Latest Tokyo Brief coverage on Sumitomo Pharma Co., Ltd., tracking filings, financial news, and market signals from Japan.
TSE:4506
Gotham City Research, which admits it is short Sumitomo Pharma's stock, has accused the drugmaker of hiding image-duplication problems in research behind a treatment developed with Kyoto University; the company calls the report one-sided and defends its approval data.
Sumitomo Pharma says a ¥164.5bn dividend from its Swiss unit and a jump in receivables were routine accounting, not the earnings-management scheme Gotham City Research alleged in an August 3 short-seller report.
Sumitomo Pharma says its auditor's unqualified opinion covers the accounts a new report questions, and for now it has found nothing that would justify restating them.
Sumitomo Chemical's net profit swung to ¥40.8bn from a year-earlier loss, driven largely by a ¥32.7bn turnaround at its Rabigh refining joint venture in Saudi Arabia and steadier crop-chemical sales, while management left its ¥70bn full-year profit target unchanged.