Astellas Pharma (4503) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 delivered exceptional revenue and profit growth, surpassing expectations and driven by strategic brands, cost optimization, and new product launches.

• Strategic brands such as PADCEV, IZERVAY, VEOZAH, VYLOY, and XOSPATA showed robust sales growth, with underlying growth of 57% excluding FX impact.

• Pipeline progress included proof-of-concept achievements for ASP3082 in NSCLC and PDAC, and an exclusive license agreement with Evopoint for ASP546C/Claudin 18.2 therapies.

• All major regions reported revenue growth, with China up 57.8% year-on-year.

Financial highlights

• Revenue reached ¥505.8 billion, up 6.9% year-on-year; underlying growth excluding forex impact was 12%.

• Core operating profit rose to ¥142.3 billion, up 61.1% year-on-year; core OP margin improved by 9.5ppt to 28.1%.

• Operating profit was ¥94.6 billion, up 86.8% year-on-year; net profit increased to ¥68.4 billion, up 82%.

• SG&A expenses fell 4.8% to ¥197.0 billion, with the SG&A ratio improving by 4.2ppt to 26.5%.

• R&D expenses decreased 17.4% to ¥71.7 billion, with the R&D ratio at 14.2%.

Outlook and guidance

• Positive growth momentum expected to continue throughout FY2025, with strategic brands driving revenue and profit.

• Full-year forecast to be reviewed at Q2 earnings, considering strong Q1 performance and future progress.

• R&D investments to expand from Q2 onwards, aligned with further proof-of-concept achievements.

• FX rate assumptions for FY2025: 140 yen/USD, 160 yen/EUR; actual Q1 rates were 145 yen/USD, 164 yen/EUR.

• Estimated FX sensitivity: 1 yen depreciation in USD adds approx. ¥7.8B revenue and ¥1.7B core OP.