Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
1600
¥ million (amount of upward revision to the full-year revenue forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportSecond quarter of the fiscal year ending March 2027 (first half of fiscal 2026)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥32,395 million+3.7%
Operating profit¥1,743 million+39.7%
Ordinary income¥1,434 million+26.8%
Net income¥1,041 million+25.2%
Selling, general and administrative expenses¥6,487 million
Full-year earnings forecast
Net Sales
¥64,800 million
Cost of sales
¥48,700 million
Selling, general and administrative expenses
¥13,700 million
Operating profit
¥2,400 million
Ordinary income
¥1,800 million
Net income for the current fiscal year
¥1,500 million
Annual Dividend
¥91 per share
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales50.0%
Operating profit72.6%
Ordinary income79.7%
Net income69.4%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-half sales were 102.8% of the pre-revision forecast, operating profit 217.9%, ordinary profit 239.0% and interim net income 208.2%. The full-year forecast was revised upward.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesRixel, Cernilton and other products contributed to higher sales
Cost of salesHigher prices for raw materials and other inputs, contract-manufactured products and in-licensed products, and increased equipment maintenance costs
Selling, general and administrative expensesHigher transportation-related expenses
R&D ExpensesA milestone payment was recorded in the year-earlier period in connection with the start of the domestic clinical trial for DMX-200
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Raw material pricesThe impact of higher prices is expected to emerge in the second half against the backdrop of the situation in the Middle East (specific prices are not disclosed)
R&D Expenses2,100
R&D expense unit¥ million
New licensing dealsPayment is scheduled to occur during the current fiscal year
New initiatives
- Construction of the Okayama No. 2 Plant (construction scheduled to begin in December 2026, completion scheduled for March 2028, production operations scheduled to begin by the end of 2028)
- Re-examine the investment scale and implementation timing for the infusion and injectable drug lines
- Continue the international joint Phase 3 clinical trial for DMX-200
- Joint research on culture media for embryo culture
- Target progressive dividends through fiscal 2030, with a DOE floor of 2.0%
Key KPIsA metric the company considers important as a management benchmark.
- Number of prescription drug products107 Options
- Sales volume mix of products designated for stable supply77 %
- Sales volume mix of essential drugs70 %
- Sales volume mix of essential drugs and products designated for stable supply93 %
- FSGS domestic patient count1,400 people
- Number of clinical trial participants333 people
- Planned number of patients286 Example
- Overseas OLE trial transition rate90 Over %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The disclosure states that the calculation is based on the wholesale price multiplied by volume, but the individual figures for unit price and volume are not disclosedSegment results
Renal and dialysis
First half of fiscal 2025
Net Sales¥17,805 million
First half of fiscal 2026
Net Sales¥18,369 million
Infusion
First half of fiscal 2025
Net Sales¥6,630 million
First half of fiscal 2026
Net Sales¥6,918 million
Generic drugs
First half of fiscal 2025
Net Sales¥4,199 million
First half of fiscal 2026
Net Sales¥4,014 million
Other
First half of fiscal 2025
Net Sales¥5,061 million
First half of fiscal 2026
Net Sales¥5,799 million
Medium-term management plan targets
Net Sales
Target value¥700 100 million
Target fiscal year¥2,030 100 million
ROE
Target valueAbove 8%
Target fiscal year2,030
Okayama No. 2 PlantScheduled to commence operations in fiscal 2028
DMX-200Expected to be launched in fiscal 2030
Financial targets
ROE
Target valueAbove 8%
Target fiscal year2,030
Actual valueFiscal 2026 forecast: 3.8%
Market Size / Share
FSGS domestic patient count
1,400 people
Capital expenditures
¥140 100 million estimated investment scale for the Okayama No. 2 Plant
Annual Dividend
Annual¥91 per share
Interim¥45 per share
End of period¥46 per share
Acquisition of treasury shares
Considering flexible share repurchases based on cash flow trends and other factors (the repurchase limit, number of shares and period are not disclosed)| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 (first half of fiscal 2026) |
| Net Sales | ¥32,395 million (YoY +3.7%) |
| Operating profit | ¥1,743 million (YoY +39.7%) |
| Ordinary income | ¥1,434 million (YoY +26.8%) |
| Net income | ¥1,041 million (YoY +25.2%) |
| Selling, general and administrative expenses | ¥6,487 million |
| Full-year earnings forecast | Net Sales ¥64,800 million / Cost of sales ¥48,700 million / Selling, general and administrative expenses ¥13,700 million / Operating profit ¥2,400 million / Ordinary income ¥1,800 million / Net income for the current fiscal year ¥1,500 million / Annual Dividend ¥91 per share |
| Progress against full-year forecast | Net Sales 50.0% / Operating profit 72.6% / Ordinary income 79.7% / Net income 69.4% |
| Self-assessment against the plan | First-half sales were 102.8% of the pre-revision forecast, operating profit 217.9%, ordinary profit 239.0% and interim net income 208.2%. The full-year forecast was revised upward. |
| Segment results | Renal and dialysis First half of fiscal 2025 Net Sales ¥17,805 million / First half of fiscal 2026 Net Sales ¥18,369 million / Infusion First half of fiscal 2025 Net Sales ¥6,630 million / First half of fiscal 2026 Net Sales ¥6,918 million / Generic drugs First half of fiscal 2025 Net Sales ¥4,199 million / First half of fiscal 2026 Net Sales ¥4,014 million / Other First half of fiscal 2025 Net Sales ¥5,061 million / First half of fiscal 2026 Net Sales ¥5,799 million |
| Breakdown of Factors Affecting the Change | Net Sales Rixel, Cernilton and other products contributed to higher sales / Cost of sales Higher prices for raw materials and other inputs, contract-manufactured products and in-licensed products, and increased equipment maintenance costs / Selling, general and administrative expenses Higher transportation-related expenses / R&D Expenses A milestone payment was recorded in the year-earlier period in connection with the start of the domestic clinical trial for DMX-200 |
| Key KPIs | Indicator Number of prescription drug products / Value 107 Options / Year on year against the same period last year Not disclosed, Indicator Sales volume mix of products designated for stable supply / Value 77 % / Year on year against the same period last year Not disclosed, Indicator Sales volume mix of essential drugs / Value 70 % / Year on year against the same period last year Not disclosed, Indicator Sales volume mix of essential drugs and products designated for stable supply / Value 93 % / Year on year against the same period last year Not disclosed, Indicator FSGS domestic patient count / Value 1,400 people / Year on year against the same period last year Not disclosed, Indicator Number of clinical trial participants / Value 333 people / Year on year against the same period last year Not disclosed, Indicator Planned number of patients / Value 286 Example / Year on year against the same period last year Not disclosed, Indicator Overseas OLE trial transition rate / Value 90 Over % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | The disclosure states that the calculation is based on the wholesale price multiplied by volume, but the individual figures for unit price and volume are not disclosed |
| Assumptions Underlying the Business Outlook | Raw material prices The impact of higher prices is expected to emerge in the second half against the backdrop of the situation in the Middle East (specific prices are not disclosed) / R&D Expenses 2,100 / R&D expense unit ¥ million / New licensing deals Payment is scheduled to occur during the current fiscal year |
| Medium-term management plan targets | Net Sales Target value ¥700 100 million / Target fiscal year ¥2,030 100 million / ROE Target value Above 8% / Target fiscal year 2,030 / Okayama No. 2 Plant Scheduled to commence operations in fiscal 2028 / DMX-200 Expected to be launched in fiscal 2030 |
| Financial targets | ROE Target value Above 8% / Target fiscal year 2,030 / Actual value Fiscal 2026 forecast: 3.8% |
| Annual Dividend | Annual ¥91 per share / Interim ¥45 per share / End of period ¥46 per share |
| Acquisition of treasury shares | Considering flexible share repurchases based on cash flow trends and other factors (the repurchase limit, number of shares and period are not disclosed) |
| Capital expenditures | ¥140 100 million (estimated investment scale for the Okayama No. 2 Plant) |
| Market Size / Share | FSGS domestic patient count 1,400 people |
| New initiatives | Construction of the Okayama No. 2 Plant (construction scheduled to begin in December 2026, completion scheduled for March 2028, production operations scheduled to begin by the end of 2028), Re-examine the investment scale and implementation timing for the infusion and injectable drug lines, Continue the international joint Phase 3 clinical trial for DMX-200, Joint research on culture media for embryo culture, Target progressive dividends through fiscal 2030, with a DOE floor of 2.0% |
Items this document does not state (9)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioOrders received and order backlogKey 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.First-half results improved due to sales growth of Rixel against the backdrop of revised clinical guidelines, increased sales of Cernilton and other products subject to repricing for unprofitable products, and growth in infusions and generic drugs. The deferral to the second half of contract execution and payment for new licensing projects scheduled for the first half, resulting in lower-than-expected research and development expenses, also contributed to the increase in profit. For the full year, continued strength in high-performing products is expected, while raw material and other input prices are expected to rise against the backdrop of the situation in the Middle East and research and development expenses are expected to increase.
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