Nxera Pharma (4565) Q1 2025 earnings summary

Executive summary

• Revenue surged 126% year-over-year to JPY 28.8 billion, driven by full-year Pivlaz sales, milestone payments from partnered programs, and M&A activities.

• Core operating profit reached JPY 3.6 billion, reversing a prior year loss, while reported operating loss narrowed to JPY 5.4 billion due to non-core and integration costs.

• Cash balance declined to JPY 36.2 billion, mainly due to advanced API purchases for QUVIVIQ and integration activities.

• Integration of Idorsia Japan and South Korea businesses completed, achieving full operational independence.

• Major pipeline progress included new deals, successful clinical milestones, and expansion of commercialized products in Japan and APAC.

Financial highlights

• Revenue: JPY 28.8 billion, up from JPY 12.8 billion year-over-year.

• Core operating profit: JPY 3.6 billion, compared to a loss of JPY 3.1 billion last year.

• Non-core expenses: JPY 9 billion, mainly M&A and integration-related, not recurring in 2025.

• Cash: JPY 36.2 billion, down from JPY 49 billion, due to inventory build for QUVIVIQ.

• Milestone revenue jumped from JPY 2.3 billion to JPY 11.2 billion, with significant payments from Neurocrine and AbbVie.

Outlook and guidance

• 2025 revenue targets: Pivlaz JPY 13–14 billion, QUVIVIQ JPY 4–5 billion, total JPY 17–19 billion.

• R&D expenses forecasted at JPY 12–14 billion, up from JPY 11.8 billion.

• SG&A expenses expected to remain flat or slightly decrease, guided at JPY 15–17 billion.

• IFRS operating profit in 2025 depends on Boehringer Ingelheim exercising the GPR52 license; otherwise, break-even is expected.

• No consolidated full-year forecast due to variability in milestone and upfront payments.