Sagent Slides To A Loss, Dragging Down Nichi-Iko’s Margin

An operating loss recorded by its US Sagent affiliate depressed Nichi-Iko’s group operating margin to just 3.7%, even though the Japanese generics specialist’s turnover increased by a tenth on strong domestic generics demand.

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A slide to an operating loss by its US Sagent unit depleted Nichi-Iko's operating margin in its financial first quarter • Source: Shutterstock

A ¥625m ($5.92m) loss posted by its Sagent operation in the US caused Nichi-Iko Pharmaceutical's group operating margin to shed just over a percentage point in the Japanese group’s financial first quarter ended 30 June 2019. The 1.1-point margin fall to just 3.7% came on a rise of a tenth in group turnover to ¥46.5bn.

Reflecting “intensified competition in the US market”, sales by the Sagent injectables segment tumbled by 30.7% to ¥6.76bn. The unit’s...

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