Cancellation of a customer project for contract manufacturing of nucleic acid drugs and resulting earnings volatility
First written in FY2018-Q3. 2 of 4 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2019-Q2.
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- FY2019-Q2MitigatedAnnual report
「In Life Science, performance for the cumulative second quarter improved because final revenue was recognized in the first quarter from contract manufacturing of nucleic acid drugs following a change in the customer's new drug development status.」
Regarding the impact on contract manufacturing following a customer's cancellation of new drug development, the company stated that Life Science performance for the cumulative second quarter improved after final revenue was recognized in the first quarter. - FY2019-Q1MitigatedAnnual report
「Negotiations under the contract manufacturing agreement have been completed, and the final revenue was recognized in the first quarter.」
Regarding the risk of contract manufacturing being suspended following a customer's cancellation of new drug development, negotiations under the contract have been completed and the process has reached the stage of recognizing the final revenue. - FY2018MaterialisedAnnual report
「As a result, revenue was ¥36,171 million, down 18.6%, and operating profit was ¥5,985 million, down 71.8%.」
The impact of the suspension of contract manufacturing following a customer's cancellation of new drug development extended to full-year results, and revenue and operating profit in the Life Science business declined significantly. - FY2018-Q3MaterialisedAnnual report
「At the US contract manufacturing subsidiary, earnings temporarily deteriorated due to the impact of the production suspension, and the segment posted an operating loss in the consolidated third quarter. Negotiations under the contract manufacturing agreement are continuing, and although we have not changed our outlook for the segment's performance for the current fiscal year, there is a possibility that revenue cannot be recognized during the current fiscal year.」
The suspension of contract manufacturing following the cancellation of late-stage clinical trials by certain customers actually occurred, resulting in an operating loss for the Life Science business in the third quarter. On a cumulative basis, revenue decreased 37.1% year on year and operating profit decreased 96.0%, and the company also stated that revenue may not be recognized during the fiscal year.