UPDATE 2-Takeda Q3 profit up 9.9 pct, outlook steady

* Q3 operating profit rises 9.9 percent

* Q3 net profit drops 14.6 percent

* Revenue from Millennium, TAP boosts profit

* Keeps full-year forecast (Adds net profit, analyst comments, byline, updates share price)

By Yumiko Nishitani

Takeda Pharmaceutical (4502.T), Japan's largest drugmaker, said third-quarter operating profit rose 9.9 percent, helped by the acquisition of U.S. biotech firm Millennium and the absorption of part of a former U.S. joint venture.

Net profit fell 14.6 percent, however, with lower interest income and decreased cash reserves after the purchase of Millennium Pharmaceutical.

Takeda shares ended the day down 1.4 percent at 4,150 yen, little changed after the earnings announcement.

"The results were 100 percent no surprise," said Kenji Masuzoe, an analyst at Deutsche Securities.

"Investors' focus will remain on the extent to which Kapidex can fill the earnings gap likely to be caused by the expiry of its patent on Prevacid in the deteriorating U.S. market and whether its diabetes drug SYR-322 will win U.S. marketing approval."

Prevacid, Takeda's mainstay acid-reflux drug, which accounted for roughly one-tenth of its revenues last business year, will lose U.S. patent protection in November. Takeda won approval for Prevacid's successor drug Kapidex this week.

Japanese drugmakers, racing with bigger global rivals to fill revenue gaps caused by patent expirations, are looking to expand drug pipelines through acquisitions, buying rights to new drugs and increasing in-house research spending.

Takeda booked goodwill amortisation and other relatively minor costs related to Millennium and the venture TAP Pharmaceuticals, but this was offset by the additional revenue and a reduction in overseas costs due to a firmer yen.

Takeda posted an operating profit of 154.9 billion yen ($1.7 billion) for October-December, as revenues rose 7.6 percent to 395.6 billion yen, led by Prevacid.

Net profit fell to 96.8 billion yen, hurt by the absence of equity income from its partial ownership of TAP, which had helped boost non-operating profits last year.

It maintained its forecast for an operating profit of 270 billion yen for the year ending on March 31, in line with a consensus of 279.8 billion yen from 19 analysts polled by Reuters Estimates.

Takeda shares fell 12 percent in October-December, outperforming the Nikkei Average .N225 which fell 21 percent. ($1=89.75 Yen) (Editing by Michael Watson)