Recognition of Non-operating Expenses and Differences Between Earnings Forecasts and Actual Results
STELLA PHARMA CORPORATION (the filing company)
The Company's product Steboronin® and the production transfer related to its new contract manufacturer
Fees paid to advisors in connection with the share and stock acquisition rights issuance program. The difference in sales was due to inventory reductions by wholesalers, while the differences in earnings were due to production-transfer-related expenses and research and development expenses related to technology transfers for Europe being lower than the previous forecast.
¥37.455 million (advisor fees, recognized as non-operating expenses). Sales were also ¥53 million below the previous forecast.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
Actual results differed from the full-year earnings forecast announced on 14 October 2025. The revised forecast (B), reflected in the earnings summary, was sales of ¥323 million, an operating loss of ¥748 million, an ordinary loss of ¥778 million, a net loss of ¥780 million and a net loss per share of ¥22.95.
Company response
Certain initiatives, primarily technology transfers and other activities related to overseas expansion in Europe, were effectively suspended.
The Company will continue operating its business with the aim of establishing a stable supply system and enhancing corporate value over the medium to long term. It is proceeding with the measures required for the technology transfer to the new contract manufacturer and the manufacturing-site change, and the work is progressing generally as originally planned.
| Item | Details |
|---|---|
| Event name | Recognition of Non-operating Expenses and Differences Between Earnings Forecasts and Actual Results |
| Subject Entity | STELLA PHARMA CORPORATION (the filing company) |
| Target Locations / Products | The Company's product Steboronin® and the production transfer related to its new contract manufacturer |
| Cause | Fees paid to advisors in connection with the share and stock acquisition rights issuance program. The difference in sales was due to inventory reductions by wholesalers, while the differences in earnings were due to production-transfer-related expenses and research and development expenses related to technology transfers for Europe being lower than the previous forecast. |
| Amount of Impact on Business Performance | ¥37.455 million (advisor fees, recognized as non-operating expenses). Sales were also ¥53 million below the previous forecast. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Actual results differed from the full-year earnings forecast announced on 14 October 2025. The revised forecast (B), reflected in the earnings summary, was sales of ¥323 million, an operating loss of ¥748 million, an ordinary loss of ¥778 million, a net loss of ¥780 million and a net loss per share of ¥22.95. |
| Suspended operations | Certain initiatives, primarily technology transfers and other activities related to overseas expansion in Europe, were effectively suspended. |
| Outlook | The Company will continue operating its business with the aim of establishing a stable supply system and enhancing corporate value over the medium to long term. It is proceeding with the measures required for the technology transfer to the new contract manufacturer and the manufacturing-site change, and the work is progressing generally as originally planned. |
Items this document does not state (16)
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 non-operating expenses consisted of fees paid to advisors in connection with the share and stock acquisition rights issuance program. The decline in sales was attributable to a temporary slowdown in sales recognition relative to growth in underlying demand, due to inventory reductions by wholesalers. The improvement in earnings resulted from production-transfer-related inspection costs and other expenses being lower than forecast following the contract manufacturer's quasi-bankruptcy, as well as lower-than-forecast research and development expenses after certain initiatives, including technology transfers for Europe, were suspended or reviewed.