Astellas Pharma has posted a decline in earnings for the first quarter ended March 31 and the profits are likely to plunge further once costs relating to its $4 billion acquisition of the USA’s OSI Pharmaceuticals are booked.

Net income fell 10.3% to 39.46 billion yen, about $455 million, hit by the strong yen, while sales were down 5.8% to 237.49 billion yen. The immunosuppressant Prograf (tacrolimus) was again the biggest seller but sales of the drug were down 16.5% to 43.40 billion yen, hit especially hard in the USA. As for Astellas’ other products, turnover from Harnal (tamsulosin) for benign prostatic hyperplasia, sold as Omnic in Europe and Flomax in the USA, slumped 38.6% to 20.80 billion yen, as a result of the loss of patent protection in Japan.

Vesicare (solifenacin) for overactive bladder was up 7.2% to 22.00 billion yen, while the antifungal agent Funguard/Mycamine (micafungin) had sales of 6.10 billion yen, an increase of 37.7%, while revenues from the cholesterol blockbuster Lipitor (atorvastatin), which Astellas markets in Japan in collaboration with the product's originator Pfizer, were down 3.6% to 24.70 billion yen.

For the full year, the Japanese drugmaker says it expects net profit of 94 billion yen for the year, down from a previous estimate of 107 billion yen, Astellas also reduced its sales forecast to 914 billion yen from 940 billion yen.

Those forecasts are likely to be cut again when Astellas presents its second-quarter earnings that will include charges related to the OSI purchase.