UPDATE 2-Astellas profit slips 4.8 pct, keeps outlook

* Q1 profit 69.6 bln yen vs 73.2 bln yen a year earlier

* Full-year forecast kept at 219 bln yen

* Blames strong yen for drop in Q1 profit, revenues

* Underlying business firm, escaping price pressure

* Prograf still without generic rival (Adds company comments, byline)

By Yumiko Nishitani

TOKYO, Aug 3 (Reuters) - Astellas Pharma Inc (4503.T), Japan's second-largest drugmaker, reported a 4.8 percent drop in April-June recurring profit on Monday due to a strong yen, while sticking to its full-year outlook.

Its underlying business was relatively firm, with the markets for its mainstays such as transplant drug Prograf and urination drug Vesicare escaping the worst impact of the economic slump and intensified competition, it said.

"The slowdown in our core market segments such as those for Prograf and Vesicare has not been sharp, while the overall market has shrunk since last autumn," Astellas chief financial officer Yoshihiko Hatanaka told a news conference.

"Also, there is growing pressure from insurance firms for lower prices, but it has not affected our business."

Yen-based revenues dipped 0.9 percent, but in terms of local currencies -- including from North America based in dollars and from Europea in euros -- they grew.

Vesicare and Harnal treatments for urinary disorders continued to lead growth, especially in the United States and Europe, while the contribution of Prograf, whose U.S. and European patents have expired, stayed flat.

"As of today, we haven't heard of any generic alternative to Prograf being approved for marketing in the United States or Europe," Hatanaka said, declining to elaborate on the outlook for any generic drug debut.

Astellas kept its recurring profit forecast for the full year to next March at 219 billion yen, short of the forecast for a 235 billion yen profit in a poll of 15 analysts by Thomson Reuters. For the April-June first quarter Astellas posted a recurring profit of 69.6 billion yen ($735 million) down from 73.2 billion yen in the same period last year.

Research and development costs fell 4.7 percent in the first quarter as Astellas concentrated its resources on focus drug candidates, and a stronger yen trimmed such costs in the United States and Europe, it said.

Also, its research and development costs in the same period last year were weighed down by a one-off cost of 8 billion yen related a licensing agreement with CoMentis on an Alzheimer's drug.

Astellas, which analysts say needs a major acquisition to strengthen its product pipeline, will continue exploring opportunities for investment, Hatanaka said without giving details.

Major Japanese drugmakers, which earn about half their revenues abroad, were hurt by the stronger yen JPY= and tough competition, as well as rising safety hurdles for new drugs.

Takeda Pharmaceutical (4502.T) and Daiichi Sankyo (4568.T), Japan's No.1 and No.3 drugmakers, posted lacklustre quarterly results on Friday. [ID:nSP355980]

In contrast, bigger overseas rivals such as Switzerland's Roche (ROG.VX) have mostly reported impressive earnings, enjoying the strength of their underlying businesses and staying free of adverse currency moves. [ID:nN23473395]

Astellas shares are flat so far this year, underperforming the benchmark Nikkei average .N225, which is up about 17 percent. ($1=94.73 Yen) (Editing by Michael Watson)