Financial Summary for FY ending March 2027 — Second Quarter (Half-year)

Overview of Results

Under Vision 110 –Stage2–, KYORIN Pharmaceutical reported half-year net sales of 57,489 million yen, operating income of 306 million yen, ordinary income of 689 million yen, and a half-year net loss attributable to owners of the parent of -1,566 million yen. Despite stable sales of core products such as Beova in a challenging domestic prescription pharmaceutical market affected by drug price revisions, overall profitability contracted significantly due to the drug price revisions and entry of generics. A special loss related to the transfer of the generics business was also recorded. Research and development expenses decreased year-on-year. Meanwhile, the financial position remains strong with an equity ratio maintained at 73.9%.

Outlook and Key Points

The full-year forecast has been revised from the previously announced figures to net sales of 126,257 million yen, operating income of -6,900 million yen, ordinary income of -6,900 million yen, and net loss attributable to owners of the parent of -6,600 million yen. Revisions to profit forecasts reflect recognition of upfront payments from contracts and the inclusion of special losses. The transfer of the generics business during the half-year and new license agreements may affect the future revenue structure.