Both segments narrowed their losses despite lower analysis-service revenue; monetizing CPM is the next focus

Consolidated business revenue in FY2027-Q1 was ¥170.766 million, down ¥30.719 million from ¥201.485 million in the year-earlier quarter. Meanwhile, the consolidated operating loss was ¥285.140 million, narrowing by ¥18.785 million from ¥303.925 million. As the loss narrowed despite lower revenue, the next results will be assessed less on simple revenue growth and more on the extent to which the cost structure, including R&D expenses and cost of revenue, was contained.

By segment, CPM generated business revenue of ¥168.785 million, accounting for almost all consolidated business revenue, and reported a segment operating loss of ¥17.118 million. In the year-earlier quarter, CPM generated approximately ¥199 million in business revenue and reported an operating loss of ¥21.206 million, meaning the loss narrowed by approximately ¥4.1 million despite the decline in revenue. The pharmaceutical R&D-related business generated only ¥1.981 million in business revenue and reported an operating loss of ¥160.925 million, an improvement from ¥179.705 million in the year-earlier quarter.

For CPM, business revenue of ¥429 million and an operating loss of ¥6 million in FY2026-H1 became business revenue of ¥806 million and an operating loss of ¥55 million for FY2026 as a whole. Although revenue increased for the full year, CPM did not achieve profitability, and the ¥17.1 million operating loss in FY2027-Q1 has not been eliminated. In FY2027-H1, it will be necessary to determine whether additions to clinical testing items, including blood samples, overseas orders and the introduction of long-read sequencing have translated into actual order volumes or improved gross margins.

The latest disclosure cites the continuation of basic research and drug-discovery research, clinical development in three areas, small-molecule drugs, cancer peptide vaccines and antibody drugs, and CPM's cost of revenue as loss factors. However, it does not disclose amounts by factor, order counts or testing volumes. In the next results, in addition to year-on-year comparisons of revenue and operating income or loss for both segments, the assessment will examine CPM's project mix, testing volumes, margins and any impairment losses to determine whether the current reduction in losses reflects temporary cost reductions or an improvement in the revenue model.