Declining Profitability at Pharmaceutical Companies and Uncertainty Surrounding the New Drug Development Landscape
First written in FY2017-Q2. 13 of 21 entries say "Restated". Latest entry: 2026-08-14.
PhoenixBio moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2017: 3 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- 2026-08-14WorsenedEarnings
「As energy prices, raw material costs, and other expenses rise, pharmaceutical companies are reviewing their research and development plans and reducing budgets because of higher research and development costs, and the outlook remains challenging.」
The company describes pharmaceutical companies’ reviews of research and development plans and budget reductions as market conditions, again providing a specific explanation of the challenging order environment. - FY2026WorsenedAnnual report
「However, development budgets at our major customers, US pharmaceutical companies, have continued to be constrained, and orders and sales in overseas markets remained sluggish.」
The company states that continued restraint on development budgets by major U.S. customers caused order intake and revenue in overseas markets to struggle. - 2026-05-15WorsenedRevision of earnings forecasts
「However, development budgets at our major customers, US pharmaceutical companies, have continued to be constrained, and orders and sales in overseas markets remained sluggish.」
The company reports for the full year that continued constraints on development budgets at major US customers caused orders and sales in overseas markets to remain sluggish. - FY2026-H1WorsenedAnnual report
「However, development budgets at the Group's major U.S. pharmaceutical-company customers remain constrained, creating a difficult order environment, including the loss of several anticipated contract-testing projects.」
In addition to the existing concerns regarding pharmaceutical-company profitability and the new-drug development environment, continued restraint on development budgets by major U.S. customers has made the difficult order environment evident through the loss of several contract-testing projects. - FY2025-H1WorsenedAnnual report
「However, during the current interim consolidated accounting period, a clear decline in research and development activity emerged among overseas pharmaceutical companies that are major customers, including frequent cancellations of development programs and workforce reductions.」
The company states that, in addition to the existing risks concerning pharmaceutical-company profitability and the new-drug development environment, development-program cancellations and workforce reductions became frequent among major overseas customers, resulting in an actual decline in research and development activity. - FY2024-Q3RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A is progressing. Against this backdrop, pharmaceutical companies are increasingly outsourcing development operations, including clinical trials, to external CROs (contract research organizations) to conduct new-drug development more quickly and efficiently. Outsourcing by pharmaceutical companies is also expanding in the preclinical testing market targeted by the Group.」
The company reaffirms growth in the pharmaceutical market, deterioration in pharmaceutical-company profitability due to the rise of generic drugs and prolonged new-drug development, M&A by large pharmaceutical companies, and the expansion of outsourcing to CROs. - FY2024-Q2RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A is progressing.」
The company reaffirms the deterioration in pharmaceutical-company profitability due to the rise of generic drugs and prolonged new-drug development, along with industry consolidation, including M&A by large pharmaceutical companies, despite growth in the pharmaceutical market. - FY2023-Q3RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A is progressing.」
The company reaffirms the deterioration in pharmaceutical-company profitability due to the rise of generic drugs and prolonged new-drug development, along with industry consolidation, including M&A by large pharmaceutical companies, despite growth in the pharmaceutical market. - FY2023-Q2RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A is progressing.」
The company reaffirms the deterioration in pharmaceutical-company profitability due to the rise of generic drugs and prolonged new-drug development, along with industry consolidation, including M&A by large pharmaceutical companies, despite growth in the pharmaceutical market. - FY2023-Q1RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A is progressing.」
The company reaffirms its view that, although the pharmaceutical market is growing, pharmaceutical-company profitability remains difficult due to the rise of generic drugs and prolonged new-drug development, as well as the state of industry consolidation, including M&A by large pharmaceutical companies. - FY2021-Q2WorsenedAnnual report
「Pharmaceutical companies are increasingly outsourcing development activities, including clinical trials, to external CROs (contract research organizations) in order to conduct new drug development rapidly and efficiently. Outsourcing by pharmaceutical companies is also expanding in the preclinical studies targeted by the Group. However, the COVID-19 pandemic has caused delays and changes in development activities.」
The company states that, in addition to the existing concerns regarding pharmaceutical-company profitability and the new-drug development environment, delays and changes in development operations caused by COVID-19 have actually occurred. - FY2021-Q1RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A remains active.」
The company reaffirms its view that, although the pharmaceutical market is growing, pharmaceutical-company profitability is difficult due to the rise of generic drugs and prolonged new-drug development. - FY2020-Q3RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A remains active.」
The company reaffirms its view that, although the pharmaceutical market is growing, pharmaceutical-company profitability remains difficult due to the rise of generic drugs and prolonged new-drug development. - FY2020-Q2RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A remains active.」
The company reaffirms its view that, although the pharmaceutical market is growing, pharmaceutical-company profitability is difficult due to the rise of generic drugs and prolonged new-drug development. - FY2019RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development.」
The company reaffirms that, although the pharmaceutical market is growing, pharmaceutical-company profitability is deteriorating due to the rise of generic drugs and prolonged new-drug development. - FY2019-Q3RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development. Meanwhile, large pharmaceutical companies with ample funding are actively investing in promising pipelines in search of new sources of revenue, and industry consolidation through M&A remains active.」
The company reaffirms that, although the pharmaceutical market is growing, pharmaceutical-company profitability remains difficult due to the rise of generic drugs and prolonged new-drug development. - FY2019-Q2WorsenedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, the market is growing against a backdrop of global population growth and rising income levels in emerging countries. However, pharmaceutical-company profitability is becoming increasingly strained due to the rise of generic drugs following patent expirations and prolonged new-drug development.」
The company states that the pharmaceutical market is growing, while the rise of generic drugs following patent expirations and prolonged new-drug development are making pharmaceutical-company profitability increasingly difficult. - FY2018-Q3RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, pharmaceutical-company profitability is declining due to intensifying competition from generic drugs, stalled product development, and downward pricing pressure stemming from fiscal pressure on health insurance premiums. At the same time, industry consolidation through M&A remains active as companies seek to improve the efficiency of investment in new-drug development, which entails substantial development costs.」
The company continues to describe declining pharmaceutical-company profitability, stalled product development, downward pricing pressure, and industry consolidation as industry conditions. - FY2018-Q2RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, pharmaceutical-company profitability is declining due to intensifying competition from generic drugs, stalled product development, and downward pricing pressure stemming from fiscal pressure on health insurance premiums. At the same time, industry consolidation through M&A remains active as companies seek to improve the efficiency of investment in new-drug development, which entails substantial development costs.」
The company reiterates declining pharmaceutical-company profitability, stalled product development, downward pricing pressure, and industry consolidation through M&A as conditions in the pharmaceutical industry. - FY2017-Q3RestatedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, pharmaceutical-company profitability is declining due to intensifying competition from generic drugs, stalled product development, and downward pricing pressure stemming from fiscal pressure on health insurance premiums. At the same time, industry consolidation through M&A remains active as companies seek to improve the efficiency of investment in new-drug development, which entails substantial development costs.」
The company reiterates declining pharmaceutical-company profitability, stalled development, downward pricing pressure, and industry consolidation through M&A as conditions in the pharmaceutical industry. - FY2017-Q2First statedAnnual report
「In the pharmaceutical industry, to which the Group's customers belong, pharmaceutical-company profitability is declining due to intensifying competition from generic drugs, stalled product development, and downward pricing pressure stemming from fiscal pressure on health insurance premiums. At the same time, industry consolidation through M&A remains active as companies seek to improve the efficiency of investment in new-drug development, which entails substantial development costs.」
The company describes declining profitability at its pharmaceutical-company customers, stalled product development, downward pricing pressure, and industry consolidation as conditions in the pharmaceutical industry.