Supplementary Financial Materials for the 3rd Quarter of Fiscal Year Ending March 2026

Performance Overview

In the 3rd quarter of the fiscal year ending March 2026, net sales reached 92,456 million yen, marking an increase of 3,169 million yen compared to the same period last year. Domestic new pharmaceuticals were affected by drug price revisions but exceeded the prior year due to growth in new drugs such as 'Beover.' Sales of generic drugs also increased, resulting in a gross profit of 39,532 million yen (Year-over-Year +860 million yen). Selling, general and administrative expenses decreased by 632 million yen YoY, and research and development expenses were reduced by 521 million yen. As a result, operating income was 4,609 million yen (up 1,493 million yen YoY, +47.9%), ordinary income was 5,097 million yen (Year-over-Year +35.8%), and net income attributable to owners of parent was 4,119 million yen (Year-over-Year +68.9%), supported by special gains from investment securities sales.

Outlook and Status of Major Products

There has been no change to the full-year earnings guidance and dividend forecast (annual dividend of 57 yen per share) for the fiscal year ending March 2026. Major products performed well, with 'Beover' increasing 15.9% YoY to 19.4 billion yen and 'Desalex' rising 5.5% to 5.9 billion yen. On the other hand, sales of 'Lasbic' and 'Flutiform' declined. R&D expenditure was 7.5 billion yen, down from the previous year, mainly due to reduced upfront contract payments. SG&A expenses excluding R&D were 27.4 billion yen, roughly flat YoY, benefitting from cost reductions linked to head office relocation. Multiple Phase 1 to 3 projects are progressing in development, and licensing agreements have been signed domestically and internationally.