Revenue from research support and reagent sales continues to grow, but earnings remain in the red

FY2026 full-year revenue was ¥135.507 million, up 12.6% year on year. By revenue stream, antibody research support increased 65.4% year on year to ¥40.270 million, marking the sixth consecutive period of revenue growth, while antibody and reagent sales were ¥95.237 million. Although this was the larger revenue stream, it was up only 0.8% from the prior period. Growth in research support is evident, but antibody and reagent sales account for approximately 70% of full-year revenue, so the composition of revenue sources within the single segment needs to be tracked separately.

In FY2027-Q1, revenue was ¥35.184 million, up 49.9% year on year. Antibody research support was ¥3.788 million, up 24.2%, while antibody and reagent sales were ¥31.396 million, up 53.7%. On an approximate basis, the latter accounted for 89.2% of quarterly revenue. Accordingly, the latest revenue growth depends heavily not only on research support but also on increased product sales of antibodies and reagents. In FY2027-H1, the key question will be whether the contribution from new products reflects a temporary increase in shipments or is accompanied by growth in sales volume and customer numbers.

On the earnings side, SG&A expenses in FY2027-Q1 were ¥236.262 million, down 1.5% year on year, and the operating loss narrowed by ¥14.028 million to ¥204.268 million from ¥218.296 million in the same period of the prior year. However, the ordinary loss was ¥201.605 million and the net loss for the quarter was ¥202.603 million, levels that do not indicate that the improvement at the operating level has brought the company close to profitability. Non-operating income of ¥4.992 million, non-operating expenses of ¥2.329 million and an impairment loss of ¥0.516 million were also recorded. In the first-half results, it will be necessary to determine whether the narrower operating loss resulted from an increase in gross profit or from the timing of expense recognition and non-operating gains and losses.

At the next results announcement, the first point to confirm will be whether cumulative first-half revenue from antibody research support exceeds ¥3.788 million and whether quarterly delivery of projects continues. For antibody and reagent sales, important points include cumulative first-half revenue, the contribution of each product already launched, and the factors behind year-on-year changes. It will also be necessary to determine whether the ¥236.262 million reduction in SG&A expenses resulted from curtailing R&D activities and whether a breakdown of R&D expenses and other SG&A expenses is disclosed.