Astellas Pharma (4503) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of FY2024 rose 22.2% year-over-year to ¥1,453.0 billion, driven by strong sales of XTANDI, PADCEV, XOSPATA, VEOZAH, and IZERVAY, offsetting declines from MYRBETRIQ generics in the US.

• Core operating profit increased 44.1% year-over-year to ¥297.5 billion, with margin improving to 20.5%.

• On a full basis, the company reported a net loss of ¥24.1 billion due to significant impairment losses and other expenses, despite higher revenue.

• Strategic Brands revenue expanded by 140.0 billion yen year-over-year, now exceeding 240.0 billion yen.

• Upward revision of full-year revenue and core operating profit guidance, reflecting robust business momentum.

Financial highlights

• Revenue: ¥1,453.0 billion (+22.2% YoY); FX impact +66.3 billion yen.

• Core operating profit: ¥297.5 billion (+44.1% YoY); margin 20.5% (+3.1ppt YoY).

• Operating profit (full basis): -¥22.5 billion, impacted by ¥180.5 billion in impairment losses, mainly on IZERVAY (Ex-US) and AT466.

• Gross profit increased 21.7% year-over-year to ¥1,180.7 billion.

• Free cash flow turned positive at ¥7.0 billion (vs. -¥723.1 billion prior year).

Outlook and guidance

• FY2024 revenue forecast raised to ¥1,900.0 billion (+5.6% vs. prior year); core operating profit forecast increased to ¥370.0 billion (+23.3%).

• Full basis profit forecasts were revised downward due to impairment losses, with expected net profit at ¥14.0 billion and EPS at ¥7.82.

• No change in dividend forecast of 74 yen per share.

• FX rates for latest forecast: 153 yen/USD, 164 yen/EUR.