Impact on business performance from drug price revisions and generic-drug promotion measures

「A drug-price revision was implemented in April 2026, marking the ninth consecutive year of revisions since fiscal 2018. Although the "spillover" rule for lowering the prices of similar products under the market expansion repricing system was abolished, overall growth in drug costs remains constrained because of the increased patient cost burden for originator products under the selected medical treatment system and intensifying pressure to reduce the prices of long-listed products. The pharmaceutical industry therefore continues to operate in a challenging environment.」

「During the interim consolidated accounting period, following the drug price revision in April 2024, an interim-year drug price revision was implemented in April 2025, evaluating drugs by category, including products eligible for the premium for new drug creation and elimination of off-label drug use, other new drugs and long-listed products. Overall growth in drug spending therefore remains subdued.」

「In Japan, the social insurance system is being restructured to address the declining birthrate and aging population. In healthcare, measures to curb pharmaceutical costs, including annual drug price revisions and other reforms to the drug pricing system, are being implemented to maintain universal health coverage.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a mid-year drug price revision was implemented in April of the current year following the drug price revision in April of the previous year.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a drug price revision was implemented in April of the previous year following the mid-year drug price revision in April of the year before that. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. As part of healthcare cost-containment measures, including reform of the drug pricing system, a drug price revision was implemented in April of the current year following the mid-year drug price revision in April of the previous year. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「Pharmaceutical business revenue was ¥13,915 million, down 0.1% year on year. While sales increased for the overactive bladder treatment Beova Tablets and the treatment for renal anemia Darbepoetin Alfa BS Injection JCR, among others, as the company promoted hybrid medical information activities that effectively used various digital content in addition to conventional in-person meetings amid the COVID-19 pandemic, revenue declined due mainly to the impact of the drug price revision implemented in April this year and a decrease in export revenue.」

「In Japan, prices for prescription drugs are determined under the National Health Insurance Drug Price Standard set by the government, and drug prices are revised annually, generally reducing the prices under the standard. In addition, fundamental reforms to healthcare and pharmaceutical administration, including changes to the health insurance system such as bundled payment for disease treatment and further measures to promote generic-drug use, could affect operating performance or financial position.」

「Pharmaceutical business revenue was ¥41,939 million, down 5.7% year on year. While sales increased for the overactive bladder treatment Beova Tablets, the treatment for nocturia caused by nocturnal polyuria in men Minirin Melt OD Tablets 25µg/50µg, the treatments for nocturnal enuresis and central diabetes insipidus Minirin Melt OD Tablets 60µg/120µg/240µg, and desmopressin products, among others, as the company continued its medical information activities with sufficient attention to infection prevention amid the COVID-19 pandemic, revenue declined due mainly to the impact of the drug price revision implemented in April last year and a decrease in export revenue.」

「Pharmaceutical business revenue was ¥26,968 million, down 5.0% year on year. While sales increased for the overactive bladder treatment Beova Tablets, the treatment for nocturia caused by nocturnal polyuria in men Minirin Melt OD Tablets 25µg/50µg, the treatments for nocturnal enuresis and central diabetes insipidus Minirin Melt OD Tablets 60µg/120µg/240µg, and desmopressin products, among others, as the company continued its medical information activities with sufficient attention to infection prevention amid the COVID-19 pandemic, revenue declined due mainly to the impact of the drug price revision implemented in April this year and a decrease in export revenue.」

「Revenue declined due mainly to the impact of the drug price revision implemented in April this year and a decrease in export revenue.」

「During the second quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, a drug price revision was implemented in April following the revision accompanying the consumption tax rate increase in October of the previous year. Although the requirements for the premium for promoting the development of new drugs and eliminating off-label drug use were expanded, drug price reductions for long-listed drugs based on replacement rates by generic drugs were made more stringent.」

「A drug price revision was also implemented in April this year. Although the requirements for the premium for new drug creation and elimination of off-label drug use were expanded, price reductions for long-listed drugs based on the rate of substitution by generics were made more stringent.」

「In addition to drug price revisions and generic-drug promotion measures, fundamental reforms to healthcare and pharmaceutical administration, including changes to the health insurance system such as bundled payment for disease treatment and further measures to promote generic-drug use, could affect operating performance or financial position.」

「During the first three quarters of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment. In addition to progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, a drug price revision was implemented in October of the previous year in line with the consumption tax rate increase.」

「Pharmaceutical business revenue was ¥26,557 million, down 11.4% year on year. Sales increased for the hyperphosphatemia treatments P-TOL Chewable Tablets and P-TOL Granules in Sachets, the overactive bladder treatment Beova Tablets, the diabetes treatment Glubes Combination Tablets and Glubes Combination OD Tablets, which were newly launched in June this year as an additional dosage form, among others, reflecting the promotion of proactive medical information activities for major products. However, revenue declined due mainly to lower sales following the launch of generic versions of Yurief Tablets and Yurief OD Tablets, treatments for urinary disorders associated with benign prostatic hyperplasia.」

「Revenue declined due to lower sales following the launch of generic versions of Yurief Tablets and Yurief OD Tablets, treatments for urinary disorders associated with benign prostatic hyperplasia, and a decline in technical-fee revenue, among other factors.」

「Revenue declined by ¥2,371 million, or 3.7%, from the previous consolidated fiscal year to ¥61,520 million, due mainly to the impact of the drug price revision implemented in April last year and a decline in technical-fee revenue.」

「Pharmaceutical business net sales were ¥4,767.1 million, down 4.3% year on year. Sales of products including the dysuria treatments for benign prostatic hyperplasia Urief Tablets and Urief OD Tablets, the hyperphosphatemia treatment P-TOL Chewable Tablets, and the ulcerative colitis treatment Rectabul 2mg Rectal Foam 14 Doses increased, mainly as a result of promoting active medical information activities for core products. However, net sales declined due in part to the impact of the drug price revision implemented in April last year and a decrease in technical fee revenue.」

「Revenue declined due to the impact of the drug price revision implemented in April this year and a decrease in technical-fee revenue, among other factors.」

「Pharmaceutical business net sales were ¥1,552.6 million, down 6.8% year on year. Sales of products including the dysuria treatments for benign prostatic hyperplasia Urief Tablets and Urief OD Tablets, the hyperphosphatemia treatment P-TOL Chewable Tablets, and the ulcerative colitis treatment Rectabul 2mg Rectal Foam 14 Doses, which was newly launched in December last year, increased, mainly as a result of promoting active medical information activities for core products. However, net sales declined due in part to the impact of the drug price revision implemented in April this year and a decrease in technical fee revenue.」

「In Japan, prices for prescription drugs are determined under the National Health Insurance Drug Price Standard set by the government, and drug prices are revised periodically, generally reducing the prices under the standard. In addition, changes to the health insurance system, including bundled payment for disease treatment and further measures to promote generic-drug use, could affect operating performance or financial position.」

「No new business or other risks arose during the nine months ended [the current third quarter]. There have also been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the first quarter of the current consolidated fiscal year, the pharmaceutical industry continued to operate in a challenging environment, with progress in healthcare cost-containment measures, including measures to promote the use of generic drugs, and intensifying market competition among companies.」

「Cost of sales rose by 1.8 percentage points in the pharmaceutical business, due mainly to the impact of drug price revisions, while it declined in the other businesses.」

「In the drug price revision implemented in April last year, the trial introduction of the premium for new drug creation and elimination of off-label drug use was continued, while a special market expansion recalculation and special price reductions were implemented for long-listed drugs that had not been sufficiently replaced by generics. The company therefore continues to operate in a challenging environment.」

「In the drug price revision implemented in April this year, the trial introduction of the premium for new drug creation and elimination of off-label drug use was continued, while a special market expansion recalculation and special price reductions were implemented for long-listed drugs that had not been sufficiently replaced by generics. The company therefore continues to operate in a challenging environment.」

「In the drug price revision implemented in April this year, the trial introduction of the premium for new drug creation and elimination of off-label drug use was continued, while a special market expansion recalculation and special price reductions were implemented for long-listed drugs that had not been sufficiently replaced by generics. The company therefore continues to operate in a challenging environment.」

「In Japan, prices for prescription drugs are determined under the National Health Insurance Drug Price Standard set by the government, and drug prices are currently revised, in principle, once every 2 years, generally reducing the prices under the standard. In addition, changes to the health insurance system, including bundled payment for disease treatment and further measures to promote generic-drug use, could affect operating performance or financial position.」