The payments are part of a nearly $1.18 billion settlement agreed on by seven European and Japanese pharmaceutical manufacturers that pleaded guilty earlier this year to criminal price-fixing charges by the US government.

The settlement to be paid by three Japanese firms comes ontop of fines totalling $137 million the three companies have already paid in the case.

Takeda Chemical Industries Ltd said on Thursday it would pay about $100 million to settle a class-action lawsuit brought by bulk buyers of its vitamins.

Japan's Eisai Co Ltd said it would pay up to $44.97 million in the settlement, while Daiichi Pharmaceutical Co Ltd said its payout would be as much as $24.8 million

To cover settlement costs and the fines, Takeda posted a special loss of 19.5 billion yen ($185 million) in the first half of the 1999-00 business year.

Despite the loss, Takeda said later that its parent net profit for the half-year to September 30 reached a record 40.33 billion yen, in line with the company's forecast in May.

A Daiichi Pharmaceutical spokesman said the company would post a special loss of 5.4 billion yen in the first half of 1999-00 in connection with the US lawsuit. An Eisai spokesman also said his company planned to write off the losses in the first half.

The other pharmaceutical manufacturers ensnared in theprice-fixing case were Roche Holding Ltd, Hoechst AG, BASF AG and Rhone-Poulenc SA.

Robust overseas sales buoy earning despite cartel loss

Industry analysts said the payments are unlikely to dent theoverall strength in Takeda's and Eisai's business performance. The two companies have been bolstered by blockbuster drugs and robust growth in the U.S. And other overseas markets.

Eisai, which has been rapidly expanding overseas with itsAlzheimer's drug Aricept, also in August obtained approval by the U.S. Authorities for a new treatment for certain gastrointestinal disorders.

In July, Takeda obtained approval from the U.S. Food and DrugAdministration to sell its Actos diabetes drug, which analysts said has the potential to become a blockbuster product.

"Although a severe business environment is expected for thefull year in light of efforts in Japan and overseas to cut medical spending, we will seek growth with our internationally-competitive products," Takeda's senior managing director Koichi Yanashita told a news conference on Thursday to announce interim earnings.

Impact of us mega-merger deal uncertain

On the recent merger between American Home Products Corp andWarner-Lambert Co to form the world's largest pharmaceutical and consumer health product firm, Yanashita said that it was too early to assess the impact on Takeda's business.

Although Takeda boasts the commanding top position among Japanese pharmaceutical makers, its business is relatively small in comparison with its US and European counterparts, whose operations snowballed through a series of mergers in the past.