Revenue Volatility Due to Dependence on Contracts and Milestones
First written in FY2023. 2 of 4 entries say "Materialised", first in FY2025. Latest entry: FY2026-H1.
Veritas In Silico moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
The whole theme swung hardest in 2019: 2 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「Milestone revenue — Royalty revenue — Research support payment revenue 35,000 Contract research revenue 1,400 Revenue from contracts with customers 36,400」
There was no milestone or royalty revenue during the interim accounting period, and contract revenue was ¥36.4 million. Contract revenue continued to fluctuate in amount and timing, although the disclosure does not attribute the decline to failed contract negotiations or other such factors. - FY2025MaterialisedAnnual report
「Business revenue declined because, in negotiations for a new project that had been carried over from FY2024, we were unable to reach agreement on the contract terms and other matters, and the expected timing of upfront payments and other amounts included in the budget on the assumption that the project would be concluded could no longer be anticipated.」
Delays or failure in contract negotiations prevented expected upfront payments and other revenue from arising, resulting in a 53.2% year-on-year decline in business revenue in FY2025. The revenue volatility risk associated with contract timing and amounts materialized as an actual decline in revenue. - 2026-03-02WorsenedGeneral Meetings of Shareholders
「As a result, the status of achievement of the KPIs, the principal indicators of our management targets for the fiscal year, was as follows: 3 new contracts were signed against an annual target of 4; the target for in-house pipeline creation was achieved with 1 patent application; and business revenue fell short of the target.」
The actual results showed that the targets for the number of new contracts and business revenue were not achieved. - FY2023First statedAnnual report
「Our revenue structure is centered on income from upfront payments, research support payments and achievement of milestones. Revenue is highly volatile. Our financial condition and operating results may be affected if we cannot conclude agreements as expected; if, even after concluding agreements as expected, joint drug-discovery research agreements or other contracts are terminated due to disagreement with a partner over subsequent research policies; or depending on the contracted amounts and timing of recognition of upfront payments under new agreements and milestone revenue, including royalty revenue, associated with research progress.」
The company identifies as a risk the fact that revenue depends on the conclusion and termination of agreements and the amounts and timing of milestone and royalty revenue recognition.