Seikagaku announced that it had cut its consolidated earnings forecast for the fiscal year ending March 2027 and expects a net loss of ¥2.7 billion. The main factor is said to be higher research and development expenses associated with preparations to refile its treatment for lumbar disc herniation.
Seikagaku Corporation, a pharmaceutical manufacturer listed on the TSE Prime Market, cut its full-year consolidated earnings forecast for the fiscal year ending March 2027 and disclosed that it expects a net loss of ¥2.7 billion. Revenue is expected to remain at ¥37.1 billion, with no major change from the previous forecast. Higher research and development expenses during the current fiscal year are cited as a contributing factor.
Under the revised forecast, revenue is unchanged from the previous forecast, while the operating loss is expected to widen from ¥2.05 billion to ¥2.9 billion and the net loss from ¥1.8 billion to ¥2.7 billion. Results for the previous fiscal year were revenue of ¥36.645 billion, an operating loss of ¥660 million and net income of ¥1.473 billion.
The widening loss is attributed to higher research and development expenses associated with preparations to refile the treatment for lumbar disc herniation. As a result, operating expenses and net loss are expected to worsen from the previous forecast.
Going forward, attention is expected to focus on the company's revised projections, as well as the status of the refiling of the lumbar treatment and trends in research and development expenses.