UPDATE 1-Japan's Eisai to hike div by 10 yen in 08/09-media

(Adds details)

TOKYO, May 13 (Reuters) - Eisai Co (4523.T: Quote, Profile, Research, Stock Buzz), Japan's fourth-largest drugmaker, will likely hike its annual dividend by 10 yen to 140 yen this business year as it swings back to profit, the Nikkei business daily reported on Tuesday.

Eisai, best known for its Alzheimer's treatment Aricept, has said it would post a net loss for the first time ever in 2007/08 on costs to acquire U.S. cancer specialist MGI Pharma, but it expects a profit of 56 billion yen ($540 million) this business year to March.

Eisai said in a statement that it had not decided on its dividend plan for this year and would announce it on Wednesday along with its earnings results and forecasts.

The Nikkei said the acquisition of MGI would increase Eisai's cash flow, and the company intends to reflect that in its dividend payment. Eisai plans a dividend of 130 yen per share in 2007/08, up 10 yen from a year earlier.

Strong demand for its Aricept drug will also support the company's bottom line, the paper said. (Reporting by Sachi Izumi; Editing by Chris Gallagher)