Financial Summary for Q3 Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Business Results

Consolidated net sales for Q3 of the fiscal year ending March 2026 reached ¥30,353 million (up 17.3% YoY), driven by strong performance of the mucopolysaccharidosis type II treatment 'Izcargo® Injection 10mg'. Meanwhile, the recombinant human growth hormone preparation 'Growject®' saw lower sales due to price revisions. Overall, revenue increased significantly, supported by a substantial rise in contract income. Operating income was ¥427 million, ordinary income ¥711 million, and net income attributable to owners of parent for the quarter was ¥1,744 million, turning profitable from losses in the same period last year. R&D expenses amounted to ¥13,372 million (increased YoY), reflecting contract upfront payments related to exclusive licensing rights acquisitions.

Financial Position and Revision to Earnings Forecast

At the end of the Q3 consolidated period, total assets were ¥113,306 million, total liabilities ¥66,555 million, and total net assets ¥46,750 million, with an equity ratio of 40.8%, down 4.0 points from the end of the previous fiscal year. The full-year earnings forecast has been revised, with net sales increased to ¥39,500 million by ¥1,700 million. However, due to higher R&D and selling, general and administrative expenses, operating income is lowered to ¥400 million, ordinary income to ¥400 million, and net income attributable to owners of parent to ¥1,600 million. The dividend forecast remains unchanged.