Earnings pressure from drug-price revisions and promotion of generic-drug use

「医薬品事業では、薬価改定や後発品の影響があったものの、肺動脈性肺高血圧症・慢性血栓塞栓性肺高血圧症治療剤「ウプトラビ」、同製品の海外売上に伴うロイヤリティ収入、ドラベ症候群・レノックス・ガストー症候群に伴うてんかん発作治療剤「フィンテプラ」、マントル細胞リンパ腫・慢性リンパ性白血病治療剤「ジャイパーカ」等が伸長しました。」

「In the pharmaceutical business, despite the effects of the drug-price revision and generic drugs, sales of Uptravi, royalty income from overseas sales of Uptravi and Fintepla, among others, grew, resulting in revenue of ¥148.484 billion, up 7.1% year on year.」

「In the pharmaceutical business, despite the effects of the drug-price revision and generic drugs, sales of Uptravi, a treatment for pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension, royalty income from overseas sales of Uptravi, and Viltepso, a treatment for Duchenne muscular dystrophy, among others, grew.」

「In the pharmaceuticals business, despite the impact of drug price revisions and generic products, sales of Uptravi, a treatment for pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension, royalty income from overseas sales of the product, and Viltepso, a treatment for Duchenne muscular dystrophy, among others, increased. Revenue was ¥94.606 billion, up 1.6% from the same period of the previous year.」

「In the pharmaceuticals business, despite the impact of drug price revisions and generic products, sales of Uptravi, a treatment for pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension, royalty income from overseas sales of the product, and Viltepso, a treatment for Duchenne muscular dystrophy, among others, increased. Revenue was ¥60.988 billion, up 0.8% from the same period of the previous year.」

「In the pharmaceuticals business, despite the impact of drug price revisions and generic products, sales of Viltepso, a treatment for Duchenne muscular dystrophy, Uptravi, a treatment for pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension, and royalty income from overseas sales of the latter, among others, increased. Revenue was ¥30.87 billion, up 1.5% from the same period of the previous year.」

「In the pharmaceuticals business, despite the impact of drug price revisions and the reversal of a one-time gain from the sale of a priority review voucher, sales of Uptravi, royalty income from overseas sales of the product and Viltepso, among others, increased. Revenue was ¥121.988 billion, up 1.1% from the previous fiscal year.」

「In the pharmaceutical business, revenue declined 0.6% year on year to ¥93.095 billion despite growth in sales of Viltepso, a treatment for Duchenne muscular dystrophy, Uptravi, a treatment for pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension, and royalty income from overseas sales of Uptravi, due to the drug-price revision and the reversal of one-time proceeds from the sale of a priority review voucher.」

「In the pharmaceuticals business, although sales of Viltepso, a treatment for Duchenne muscular dystrophy, Uptravi, a treatment for pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension, and royalty income from overseas sales of the latter, among others, increased, revenue declined due to the impact of drug price revisions and the reversal of a one-time gain from the sale of a priority review voucher. Revenue was ¥60.499 billion, down 4.6% from the same period of the previous year.」

「In the pharmaceutical business, revenue declined 17.6% year on year to ¥30.407 billion despite growth in sales of Viltepso, a treatment for Duchenne muscular dystrophy, Uptravi, a treatment for pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension, and royalty income from overseas sales of Uptravi, due to the drug-price revision and the reversal of the one-time proceeds from the sale of a priority review voucher.」

「The pharmaceutical industry surrounding the Group faces a challenging environment due to measures to contain healthcare costs, including promotion of generic-drug use and annual drug-price revisions, as well as the impact of the COVID-19 pandemic.」

「On the earnings side, although the cost of sales ratio increased due to the drug-price revision and other factors, higher revenue and other factors resulted in operating profit of ¥21.668 billion, up 5.0% year on year, ordinary profit of ¥22.442 billion, up 4.2%, and net income attributable to owners of the parent of ¥16.866 billion, up 3.5%.」

「For the cumulative third quarter of the current consolidated fiscal year, revenue increased 1.3% year on year to ¥88.113 billion. On the earnings side, the reversal of milestone income from Uptravi recorded in the same period of the previous year and the increase in the cost of sales ratio due to the drug-price revision and other factors resulted in operating profit of ¥15.466 billion, down 5.9% year on year, ordinary profit of ¥16.277 billion, down 5.6%, and quarterly net income attributable to owners of the parent of ¥11.886 billion, down 6.4%.」

「For the outlook for the following consolidated fiscal year, although the pharmaceutical business will be affected by the drug-price revision scheduled for October, the company expects revenue growth driven by expansion in new product lines, including Uptravi, Gazyva and Zalutia, and growth in royalty income from overseas sales of Uptravi.」

「For the cumulative second quarter of the current consolidated fiscal year, revenue increased 7.7% year on year to ¥53.497 billion. On the earnings side, the increase in the cost of sales ratio following the drug-price revision, higher R&D expenses as clinical trials progressed, and increased promotional expenses for new product lines resulted in operating profit of ¥7.569 billion, down 18.3% year on year, ordinary profit of ¥8.196 billion, down 15.3%, and quarterly net income attributable to owners of the parent of ¥6.037 billion, down 13.7%.」

「On the earnings side, higher cost of sales as a percentage of revenue following the drug-price revision, increased R&D expenses as clinical trials progressed, and higher promotional expenses for new product lines resulted in operating profit of ¥4.846 billion, down 3.3% year on year, ordinary profit of ¥5.320 billion, down 1.1%, and quarterly net income attributable to owners of the parent of ¥3.964 billion, up 0.1%.」

「In the pharmaceutical business, the operating environment is becoming increasingly challenging as measures to contain healthcare costs, including lower drug prices and greater promotion of generic-drug use, are being strengthened, while R&D expenses associated with developing new products are increasing.」

「The selling prices of prescription medicines are set based on the National Health Insurance drug price list in Japan, which is generally revised every 2 years and is usually lowered. Depending on the size of the reduction, the Group's operating results could be affected.」