PeptiDream (4587) Q2 2024 earnings summary

Executive summary

• First half FY2024 revenue reached ¥36.1 billion, with ¥28.5 billion from Drug Discovery/PeptiDream and ¥7.7 billion from Radiopharmaceuticals/PDRadiopharma, up 283.3% year-over-year.

• Core operating profit was ¥24.8 billion and net income was ¥17.9 billion, turning profitable from a prior year loss and already exceeding full-year targets.

• Major revenue driver was the expanded Novartis collaboration, including new peptide drug conjugate programs and a $180 million upfront payment received in July.

• Significant progress in both radiopharmaceutical and non-radiopharmaceutical drug discovery, with multiple clinical and preclinical programs advancing.

• Maintained a strong financial position with total assets of ¥95.9 billion, equity ratio of 61.3%, and cash exceeding ¥25.5 billion at end of July.

Financial highlights

• Revenue guidance for FY2024 was revised upward from ¥35 billion to ¥45 billion after the Novartis deal, with 80% of revised revenue and 120% of profit targets achieved by June.

• Operating profit was ¥24.6 billion, profit before tax ¥24.7 billion, and basic EPS was ¥138.30.

• PDRadiopharma revenue for H1 was ¥7.7 billion, with full-year expected between ¥15.4–16.2 billion.

• No interim or forecasted dividends declared.

• Net debt negative, with equity ratio at 61.3%.

Outlook and guidance

• Full-year 2024 revenue forecast at ¥45.0 billion, core operating profit ¥20.5 billion, and net profit ¥14.0 billion, with potential for further upward revision due to ongoing deal negotiations.

• Additional milestones and upfront payments expected in H2, with some deals possibly shifting to 2025.

• PDRadiopharma expects slight revenue growth in H2, driven by AMYViD and potential Tauvid approval.

• Management confident in maintaining or growing revenue in FY2025 and FY2026, supported by internal assets and collaborations.

• Guidance unchanged; actual performance may differ due to various factors.