Nxera Pharma (4565) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue rose to JPY 29.6 billion, driven by strong sales of PIVLAZ and QUVIVIQ, but net loss widened to JPY 12.53 billion due to higher R&D, restructuring, and one-time financial charges.

• Core operating loss was JPY 352 million; IFRS operating loss was JPY 8.4 billion, impacted by increased R&D and restructuring costs.

• Major restructuring included a 15% workforce reduction, smaller executive team, and strategic refocus on high-value programs.

• Expanded pipeline and partnerships, including vamorolone in-licensing and new agreements with Viatris, Holling Bio-Pharma, and Santhera.

• Advanced multiple clinical programs, including new Phase 2 and 3 assets with partners like Neurocrine, Centessa, Lilly, and AbbVie.

Financial highlights

• Total revenue grew 2.7% year-over-year to JPY 29,615 million, with product sales at JPY 17.8 billion, PIVLAZ at JPY 13.5 billion (+6.8%), and QUVIVIQ at JPY 4.3 billion (+224%).

• Core operating loss was JPY 352 million; IFRS operating loss JPY 8.4 billion; net loss JPY 12.53 billion; EPS: -¥138.80.

• R&D expenses rose to JPY 14,466 million (+JPY 2,650 million YoY); SG&A expenses decreased by JPY 790 million YoY.

• One-off costs included JPY 4.6 billion for convertible bond restructuring and JPY 1.8 billion for restructuring.

• Cash and cash equivalents at year-end: JPY 20,365 million (down from JPY 32,268 million prior year).

Outlook and guidance

• FY 2026 revenue forecast: JPY 33,800–48,800 million; core operating profit: JPY 7,800–22,800 million; operating profit: JPY 700–15,700 million.

• Net product sales guidance: JPY 19.5 billion (PIVLAZ + QUVIVIQ); PIVLAZ expected at JPY 13,800–14,200 million, QUVIVIQ at JPY 5,000–6,000 million.

• Assumes JPY 12,500 million in milestone income and JPY 3,500 million reduction in R&D and SG&A costs.

• Targeting full-year profitability on an IFRS basis and over 10% cost reduction.

• Multiple milestone payments and out-licensing of phase II-ready assets could drive upside.