Asian drug companies rise on US health speculation

Shares of Asian drugmakers posted the biggest gain as a group in the region today on speculation US President Barack Obama’s healthcare reform plan will be derailed. Astellas Pharma Inc, which derives 27 per cent of its revenue from North America, closed 2.7 per cent higher in Tokyo at ¥3,565, the highest since October 26. Takeda Pharmaceutical Co, Asia’s largest drugmaker, added 1.7 per cent to ¥4,000. Eisai Co, which gets 47 per cent of its sales from North America, advanced 2.5 per cent to ¥3,445. The stocks rose after Republican Scott Brown won a US Senate seat in Massachusetts. The victory gives Republicans enough members to block votes on an overhaul of the US health- care system. The legislation is aimed at extending health coverage to millions of uninsured Americans by expanding the Medicaid program for the poor. The gauge of healthcare companies on the MSCI Asia Pacific Index climbed 1.4 per cent, the biggest gain of 10 industry groups. Shares on the healthcare gauge are trading at 17 times estimated profit, compared to 20 times for the MSCI Asia Pacific, which fell 0.7 per cent to 124.44 as of 4:35 pm in Tokyo.