FY2026: losses continue to narrow, but monetization has yet to be confirmed; delivery against the full-year loss forecast is the focus

For the 9 months ended 31 May 2026, the fiscal year ending August 2026, no business revenue was recognized, as in the same period of the previous year. The operating loss was ¥1,070 million, the ordinary loss was ¥1,046 million, and the net loss for the quarter was ¥1,047 million. These were reductions of ¥350 million, ¥351 million and ¥352 million, respectively, from the operating loss of ¥1,420 million, ordinary loss of ¥1,397 million and net loss for the quarter of ¥1,399 million recorded in the same period of the previous year.

The narrower losses were driven not by the emergence of revenue, but primarily by reductions in R&D expenses to ¥841 million, down 25.3% year on year, and other selling, general and administrative expenses to ¥229 million, down 22.3%. Accordingly, the improvement at this stage cannot be viewed as the start of business revenue or as evidence of recurring licensing income. Changes in the cost base and progress in pipeline development need to be assessed separately.

The full-year forecasts are “—” for business revenue, an operating loss of ¥2,008 million, an ordinary loss of ¥1,958 million and a net loss of ¥1,960 million. These forecasts were not revised in the third-quarter results. Applying the 9-month operating loss of ¥1,070 million mechanically to the full-year forecast implies an operating loss of approximately ¥938 million in the fourth quarter. The actual levels of R&D expenses, outsourcing expenses and patent-related costs will therefore be key points to monitor.

The third-quarter results did not include a quarterly cash flow statement, and the cumulative operating cash flow for the quarter was not disclosed. In addition, as pharmaceuticals is the sole reporting segment, expenses and profit or loss for individual pipelines such as rogocekib are not separately presented as financial figures. In the full-year results, we will want to review together whether business revenue was recognized, the full-year loss, operating cash flow, cash balance, maintenance of the ¥0.00 annual dividend forecast, and any changes in the disclosure concerning the going-concern assumption.