Latest Results

IFRS results

Revenue for the three months under review was ¥321.7 billion (an increase of 11.5% year on year), operating profit for the three months under review was ¥158.8 billion (an increase of 16.2% year on year), and net income for the three months under review was ¥115.4 billion (an increase of 18.7% year on year). These results include non-Core items, which are excluded from the Core results that Chugai adopts to manage recurring business activities, such as amortization of intangible assets of ¥0.5 billion and business rebuilding expenses of ¥4.0 billion.

Core results

Revenue for the three months under review was ¥321.7 billion (an increase of 11.5% year on year), due to increases in sales and other revenue.

Of revenue, sales were ¥291.6 billion (an increase of 12.3% year on year). Domestic sales exceeded the levels of the same period of the previous fiscal year due to the increase in the sales of the mainstay products Vabysmo, Hemlibra, Polivy, and Phesgo, and the new product Lunsumio, despite the effects of the NHI drug price revisions and the market penetration of generic drugs. Overseas sales increased compared to the same period of the previous fiscal year, due to significant increases in the export of Hemlibra to Roche and the export of NEMLUVIO to Galderma, the company to which the drug was out-licensed. Other revenue was ¥30.2 billion (an increase of 5.2% year on year). It exceeded the levels of the same period of the previous fiscal year mainly due to the increase in royalty income related to NEMLUVIO, despite the decrease in one-time income. Furthermore, cost to sales ratio was 31.7%, a 2.0 percentage point improvement year on year, reflecting a change in product mix, the effects of foreign exchange, and other factors. As a result, gross profit amounted to ¥229.5 billion (an increase of 14.2% year on year).

Research and development expenses were ¥41.9 billion (an increase of 2.9% year on year), exceeding the levels of the same period of the previous fiscal year due to increases associated with investments into drug discovery/early development and the progress of development projects and other factors. Selling, general and administration expenses were ¥24.9 billion (an increase of 18.6% year on year), increasing compared to the same period of the previous fiscal year primarily due to one-off increase in various expenses and due to increase in corporate enterprise tax (factor-based tax). Other operating income (expense) was income of ¥0.6 billion (¥0.3 billion of income for the same period of the previous fiscal year). As a result, core operating profit was ¥163.3 billion (an increase of 17.1% year on year) and core net income was ¥118.6 billion (an increase of 19.6% year on year).

(Billions of yen)

Revenue

Revenue is expected to increase to ¥1,345.0 billion (an increase of 6.9% year on year).

Of revenue, domestic sales are expected to increase to ¥498.0 billion (an increase of 5.4% year on year), due to an increase in sales volume of the new product Lunsumio as well as mainstay products, despite the decrease in sales caused by the effects of the NHI drug price revisions and the market penetration of generic drugs.

Overseas sales are expected to be at levels similar to the same period of the previous fiscal year at ¥602.0 billion (a decrease of 0.6% year on year), due to factors such as a decrease in Actemra despite the growth in sales of NEMLUVIO and Hemlibra.

Other revenue is expected to be ¥245.0 billion (an increase of 36.0% year on year). Royalty and profit-sharing income are forecasted to increase to ¥217.2 billion (an increase of 25.8% year on year), due to increases in out-licensed products to third parties and income related to Hemlibra. Other operating income is expected to be ¥27.8 billion (an increase of 270.7% year on year) due to the increase in one-time income.

Core Operating Profit / Core EPS

Gross profit is expected to be ¥961.5 billion (an increase of 6.1% year on year), with the assumption that the cost to sales ratio is 34.9%, which is a 2.3 percentage point improvement year on year, due to a change in the product mix, etc., in addition to the above outlook on revenue.

Due to investments into drug discovery/early development and increases associated with the progress of development projects, etc., research and development expenses are expected to be ¥190.0 billion (an increase of 5.5% year on year), and selling, general and administration expenses are expected to be ¥102.0 billion (a decrease of 1.2% year on year,) which is at the same level as the previous year.

As a result, Core operating profit is expected to reach ¥670.0 billion (an increase of 7.5% year on year) and Core net income is expected to increase to ¥485.0 billion (an increase of 7.5% year on year). Core EPS of ¥295.00 (an increase of 7.7% year on year) is also expected.