Astellas Pharma (4503) Q2 2025 earnings summary

Executive summary

• Revenue increased 22% year-over-year to ¥935.6 billion, driven by strong growth in strategic brands and XTANDI, especially in the US, offsetting declines from MYRBETRIQ generics.

• Core operating profit rose 36.2% year-over-year to ¥183.1 billion, reflecting robust sales and effective cost management.

• Full-year revenue and core operating profit forecasts were revised upward, shifting from an initial profit decline to a profit increase outlook.

• Strategic brands PADCEV, IZERVAY, VEOZAH, VYLOY, and XOSPATA collectively exceeded ¥150 billion in sales, with significant upward forecast revisions.

Financial highlights

• Revenue reached ¥935.6 billion (+22% YoY); core operating profit was ¥183.1 billion (+36.2% YoY); FX impact added ¥54.8 billion.

• Operating profit increased 69.9% to ¥93.7 billion; net profit rose 105.3% to ¥73.5 billion.

• SG&A expenses rose 17% to ¥406.4 billion, but the SG&A ratio improved by 3.2ppt to 30%.

• R&D expenses increased 21.4% to ¥172.3 billion, with the R&D ratio stable at 18.4%.

• Basic core earnings per share increased 29% to ¥78.62; basic EPS on a full basis rose 105.7% to ¥41.06.

Outlook and guidance

• Full-year revenue forecast raised to ¥1,800 billion (+¥150 billion vs. initial), with core operating profit expected at ¥300 billion (+20%).

• Full-year profit forecast on a full basis increased to ¥50 billion (+66.7%).

• Upward revision reflects strong XTANDI and strategic brand sales and favorable FX rates.

• SG&A and R&D expense forecasts also increased, but core OP margin expected to improve to 16.7%.

• FX rates for revised forecast: 149 yen/USD, 160 yen/EUR.