Chugai Pharmaceutical (4519) Q3 2025 earnings summary

Executive summary

• Revenue and profit increased year-over-year, with Q3 FY2025 revenue at ¥911.6 billion (+5.0%) and core operating profit at ¥450.5 billion (+5.6%), driven by robust domestic and overseas sales, especially from Hemlibra, Actemra, Phesgo, PiaSky, Vabysmo, and Enspryng.

• Overseas sales saw major growth, particularly from Actemra exports to Roche, while domestic performance was strong for both new and mainstay products.

• Strategic acquisition of Renalys Pharma (Rhenalis/Renalys) secured sparsentan for the nephrology pipeline, with plans for domestic filing in 2026.

• The company remains on track to meet or exceed full-year targets, supported by steady progress in core products, successful new launches, and pipeline advances.

• Continued investment in manufacturing, R&D, and external partnerships, including Rani Therapeutics collaboration and plant expansions.

Financial highlights

• Q3 revenue was ¥911.6 billion (+5.0% year-over-year); core operating profit was ¥450.5 billion (+5.6%); net income was ¥320.0 billion (+6.2%).

• Domestic sales reached ¥343.7 billion (+3.6%), and overseas sales rose to ¥450.9 billion (+7.7%).

• Operating margin improved to 49.4% (up 0.3 points year-over-year); net income margin was 35.1%.

• Cost to sales ratio increased to 33.1% (up 0.6 points), with cost of goods sold at ¥263 billion (+7.9%).

• Net cash decreased by ¥113.9 billion to ¥882.4 billion, mainly due to tax and dividend payments.

Outlook and guidance

• Full-year revenue forecast is ¥1,190.0 billion (+1.7%), with core operating profit of ¥570.0 billion (+2.5%) and core net income of ¥410.0 billion (+3.2%).

• 75–76.6% of annual sales and profit targets were achieved by the end of Q3, with Q4 sales expected to be higher due to shipment timing and seasonality.

• Overseas sales are expected to exceed forecasts, driven by Hemlibra and Actemra exports, while Actemra biosimilar erosion remains a risk.

• Dividend payout will return to the regular policy after a special 100th anniversary dividend this year.

• No changes have been made to previously announced forecasts.