Worth reading
75Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
13.9
Hundreds of millions of yenWording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Financial Results PresentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales78.6 Hundreds of millions of yen+21.5%
Operating profit5.2 Hundreds of millions of yen
Ordinary income14.3 Hundreds of millions of yen+177.9%
Net income10.6 Hundreds of millions of yen+308.6%
Gross Profit Margin51.4 %
Operating profit margin6.6 %
Selling, general and administrative expenses35.26 Hundreds of millions of yen
Results for the three months of the current quarter
Net Sales
78.6 Hundreds of millions of yen
Operating profit
5.2 Hundreds of millions of yen
Ordinary income
14.3 Hundreds of millions of yen
Profit attributable to owners of the parent
10.6 Hundreds of millions of yen
Full-year earnings forecast
Net Sales
380 Hundreds of millions of yen
Operating profit
30 Hundreds of millions of yen
Ordinary income
60 Hundreds of millions of yen
Profit attributable to owners of the parent
35 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Q1 profit exceeded the initial plan. The full-year earnings forecast remains unchanged from the initial forecast.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- CRO business and nonclinical businessChange in operating profit7.7
- TR business and other than SatsumaChange in operating profit-0.2
- TR business and SatsumaChange in operating profit1.5
- Medipolis BusinessChange in operating profit-0.2
- U.S. Real EstateChange in operating profit0
- Other businesses and eliminationsChange in operating profit-0.2
- Preclinical business and ordinary profit factorsChange in ordinary income8
- Clinical BusinessChange in ordinary income0.1
- Foreign-Exchange Gains and LossesChange in ordinary income0.5
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
¥150 /US$
Foreign exchange sensitivity
Net SalesAnnual revenue increases by ¥100 million for every ¥1 depreciation of the yen
Operating profitAnnual operating profit increases by ¥70 million for every ¥1 depreciation of the yen
New initiatives
- Commencement of construction of the EU Laboratory Building, a world-class NHP research facility
- Entering into a new preferred contract with a major Japanese pharmaceutical company
- Development of a commercial supply chain for the U.S. launch of Atzumi
- Pursuing partnering and direct sales of Atzumi in parallel
- Promoting the licensing of SMART technology to third parties
- Building the SGG community and expanding drug-discovery support networks in Japan and the United States
Key KPIsA metric the company considers important as a management benchmark.
- Nonclinical business bookings99.6 Hundreds of millions of yenYear on year against the same period last year+23.0%
- Nonclinical business order backlog440.6 Hundreds of millions of yenYear on year against the same period last year+79.5%
- Overseas bookings as a percentage of total bookings53.2 %
- Overseas order backlog as a percentage of total backlog53.7 %
- Equity-method investment income from Shin Nippon Biomedical Laboratories PPD718 Millions of yenYear on year against the same period last year+2.6%
- Number of direct meetings with overseas customers66 More than [number] meetings
- SGG event participants190 people
Segment results
- CRO BusinessNet Sales7,537 Millions of yen (YoY +21.9%)Operating profit1,538 Millions of yen (YoY +100.0%)
- Translational Research BusinessNet Sales59 Millions of yen (YoY +25.5%)Operating profit-966 Millions of yen
- Medipolis BusinessNet Sales237 Millions of yen (YoY +12.9%)Operating profit16 Millions of yen (YoY -51.5%)
- U.S. Real EstateNet Sales49 Millions of yen (YoY +14.0%)Operating profit-28 Millions of yen
- Other businesses and eliminationsNet Sales-15 Millions of yenOperating profit-38 Millions of yen
Market Size / Share
U.S. acute migraine market
Number of high-prescribing physicians2,600 people
Percentage of all prescribers0.6 people
Unit 2%
Percentage of all prescriptions20 people
Unit 3%
Expected Atzumi Peak SalesExpected Atzumi peak sales of more than US$200 million annually
Orders received and order backlog
Orders received
99.6 Hundreds of millions of yen
Order backlog
440.6 Hundreds of millions of yen
Number of employees
Number of Employees1,676 people
As ofAs of the end of June 2026
Hiring plan150 new graduates
Capital expenditures
110.8 Hundreds of millions of yen
Annual Dividend
Annual dividend per share¥50
Payout ratio
59.5 %
| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | 78.6 Hundreds of millions of yen (YoY +21.5%) |
| Operating profit | 5.2 Hundreds of millions of yen |
| Ordinary income | 14.3 Hundreds of millions of yen (YoY +177.9%) |
| Net income | 10.6 Hundreds of millions of yen (YoY +308.6%) |
| Gross Profit Margin | 51.4 % |
| Operating profit margin | 6.6 % |
| Selling, general and administrative expenses | 35.26 Hundreds of millions of yen |
| Results for the three months of the current quarter | Net Sales 78.6 Hundreds of millions of yen / Operating profit 5.2 Hundreds of millions of yen / Ordinary income 14.3 Hundreds of millions of yen / Profit attributable to owners of the parent 10.6 Hundreds of millions of yen |
| Full-year earnings forecast | Net Sales 380 Hundreds of millions of yen / Operating profit 30 Hundreds of millions of yen / Ordinary income 60 Hundreds of millions of yen / Profit attributable to owners of the parent 35 Hundreds of millions of yen |
| Self-assessment against the plan | Q1 profit exceeded the initial plan. The full-year earnings forecast remains unchanged from the initial forecast. |
| Segment results | Segment CRO Business / Net Sales 7,537 Millions of yen (YoY +21.9%) / Operating profit 1,538 Millions of yen (YoY +100.0%), Segment Translational Research Business / Net Sales 59 Millions of yen (YoY +25.5%) / Operating profit -966 Millions of yen, Segment Medipolis Business / Net Sales 237 Millions of yen (YoY +12.9%) / Operating profit 16 Millions of yen (YoY -51.5%), Segment U.S. Real Estate / Net Sales 49 Millions of yen (YoY +14.0%) / Operating profit -28 Millions of yen, Segment Other businesses and eliminations / Net Sales -15 Millions of yen / Operating profit -38 Millions of yen |
| Breakdown of Factors Affecting the Change | Item CRO business and nonclinical business / Change in operating profit 7.7 Hundreds of millions of yen, Item TR business and other than Satsuma / Change in operating profit -0.2 Hundreds of millions of yen, Item TR business and Satsuma / Change in operating profit 1.5 Hundreds of millions of yen, Item Medipolis Business / Change in operating profit -0.2 Hundreds of millions of yen, Item U.S. Real Estate / Change in operating profit 0 Hundreds of millions of yen, Item Other businesses and eliminations / Change in operating profit -0.2 Hundreds of millions of yen, Item Preclinical business and ordinary profit factors / Change in ordinary income 8 Hundreds of millions of yen, Item Clinical Business / Change in ordinary income 0.1 Hundreds of millions of yen, Item Foreign-Exchange Gains and Losses / Change in ordinary income 0.5 Hundreds of millions of yen |
| Key KPIs | Indicator name Nonclinical business bookings / Value 99.6 Hundreds of millions of yen / Year on year against the same period last year 23 Hundreds of millions of yen, Indicator name Nonclinical business order backlog / Value 440.6 Hundreds of millions of yen / Year on year against the same period last year 79.5 Hundreds of millions of yen, Indicator name Overseas bookings as a percentage of total bookings / Value 53.2 % / Year on year against the same period last year Not disclosed, Indicator name Overseas order backlog as a percentage of total backlog / Value 53.7 % / Year on year against the same period last year Not disclosed, Indicator name Equity-method investment income from Shin Nippon Biomedical Laboratories PPD / Value 718 Millions of yen / Year on year against the same period last year 2.6 Millions of yen, Indicator name Number of direct meetings with overseas customers / Value 66 More than [number] meetings / Year on year against the same period last year Not disclosed, Indicator name SGG event participants / Value 190 people / Year on year against the same period last year Not disclosed |
| Number of employees | Number of Employees 1,676 people / As of As of the end of June 2026 / Change during the period Not disclosed / Hiring plan 150 new graduates |
| Assumptions Underlying the Business Outlook | Exchange rate Value ¥150 /US$ / Foreign exchange sensitivity Net Sales Annual revenue increases by ¥100 million for every ¥1 depreciation of the yen / Operating profit Annual operating profit increases by ¥70 million for every ¥1 depreciation of the yen |
| Annual Dividend | Annual dividend per share ¥50 / Interim Dividend Not disclosed / Year-end dividend Not disclosed |
| Payout ratio | Value 59.5 % |
| Capital expenditures | 110.8 Hundreds of millions of yen |
| Orders received and order backlog | Orders received 99.6 Hundreds of millions of yen / Order backlog 440.6 Hundreds of millions of yen |
| Market Size / Share | U.S. acute migraine market Number of high-prescribing physicians 2,600 people / Percentage of all prescribers 0.6 people / Unit 2 % / Percentage of all prescriptions 20 people / Unit 3 % / Expected Atzumi Peak Sales Expected Atzumi peak sales of more than US$200 million annually |
| New initiatives | Commencement of construction of the EU Laboratory Building, a world-class NHP research facility, Entering into a new preferred contract with a major Japanese pharmaceutical company, Development of a commercial supply chain for the U.S. launch of Atzumi, Pursuing partnering and direct sales of Atzumi in parallel, Promoting the licensing of SMART technology to third parties, Building the SGG community and expanding drug-discovery support networks in Japan and the United States |
Items this document does not state (8)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The main reason was that the completion of multiple CRO projects, for which revenue had been expected to be recognized in the same quarter of the previous year, was pushed back to FY2027, with most of the revenue recognized in Q1. Other factors included higher facility utilization in the CRO business, the deferral of expenses in the TR business, an increase in equity-method investment income, and foreign exchange gains resulting from the weaker yen.
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