Consolidated Financial Summary for Q1 Fiscal Year Ending December 2026 [IFRS]

Performance Overview

Consolidated revenue for Q1 of the fiscal year ending December 2026 was JPY 630,342 million (an 8.2% increase year-over-year), with revenue growth across all segments including the Pharmaceutical, Nutraceutical, Consumer Products, and Other Businesses. In particular, the Pharmaceutical segment saw increased sales of the antipsychotic 'Rexulti', the anticancer agent 'Lonsurf', long-acting injectable products 'Abilify Maintena/Asmota', and the anti-APRIL antibody 'Bojact'. Operating profit was JPY 123,019 million (0.1% increase YoY), operating income was JPY 126,287 million (1.5% increase YoY), and net income attributable to owners of parent for the quarter was JPY 98,348 million (15.7% increase YoY), achieving profit growth. Research and development expenses were JPY 82,101 million (an increase of 4.7% YoY), mainly due to increased development costs for new antipsychotic Ulotaront, hematologic cancer treatment ASTX030, and phenylketonuria treatment repinatrabit.

Financial Position and Cash Flow Status

Total assets amounted to JPY 4,209,195 million (an increase of JPY 11,632 million from the previous consolidated fiscal year-end), total liabilities were JPY 1,035,161 million (a decrease of JPY 62,640 million), and total equity was JPY 3,174,033 million (an increase of JPY 74,272 million). Although current assets decreased, an increase in non-current assets drove the overall asset growth. Cash flow from operating activities increased year-over-year to JPY 108,882 million, cash flow used in investing activities totaled JPY 22,396 million, and cash flow used in financing activities was JPY 84,620 million. The main expenditures were treasury stock acquisitions, bond redemptions, and dividend payments.

Segment Results

Pharmaceutical segment revenue was JPY 453,822 million (8.6% increase YoY), and operating profit was JPY 114,307 million (1.9% decrease YoY). Prescriptions for the antipsychotic 'Rexulti' increased in the US and Japan, with sales of JPY 94,956 million (25.5% increase YoY). The anticancer agent 'Lonsurf' also saw revenue growth. The long-acting injectable 'Abilify' series posted substantial revenue gains. On the other hand, sales of the V2 receptor antagonist 'Samsca/Zynarc' declined due to generic competition. Nutraceuticals segment revenue was JPY 138,935 million (5.8% increase YoY), and operating profit was JPY 15,875 million (5.6% increase YoY), with growth in the climate/environmental risk, women’s health, and Helcia Life categories. The Consumer Products segment performed solidly with revenue of JPY 7,924 million (7.3% increase YoY) and operating profit of JPY 5,398 million (13.0% increase YoY). The Other Businesses segment also showed revenue and profit growth.

M&A Overview

On March 27, 2026, Otsuka Pharmaceutical Co., Ltd. agreed to fully acquire Transcend Therapeutics, Inc., a US-based company developing fast-acting treatments for psychiatric and neurological disorders. The acquisition consideration includes a cash payment of USD 700 million plus up to USD 525 million in milestone payments. The acquisition is expected to be completed in Q2 of fiscal 2026. This will accelerate the development of novel therapies in the psychiatric and neurological fields, including PTSD, and is anticipated to expand the portfolio.