Risk of relying on contract-fee income for growth investment
First written in FY2025. 1 of 2 entries say "Materialised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2025: 3 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Policy for recovering upfront payments and stabilizing the earnings structureAnnual report
「Upfront payments increased by ¥5,032 million, or 972.8%, year on year. For the fiscal year ending March 2027, the company plans to conclude a new agreement and expects revenue to increase.」
Upfront payments recovered from ¥517 million in the previous period to ¥5,549 million, while the company indicated that its outlook for the next period also assumes a new agreement, showing that efforts to stabilize its dependence on upfront payments are continuing. - FY2025MaterialisedAnnual report
「To date, our group has continued to make active growth investments for the future, funded by domestic product sales and upfront payments from out-licensing agreements and other contracts with external companies. However, we recognize that this period’s results have brought to light the risk of relying on upfront payments to fund growth investments.」
While the company had used upfront payments to fund growth investments, the planned licensing agreement was not concluded during the period, and upfront payments fell 93.0% year on year to ¥517 million. The company itself stated that the risk of dependence had become apparent.