PeptiDream (4587) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue was ¥8.54B, down 76.4% year-over-year, with a net loss of ¥2.12B; full-year guidance remains at ¥49B revenue and ¥15.1B net income.

• Drug Discovery segment saw a sharp revenue decline and loss, while Radiopharmaceuticals grew revenue and returned to profitability.

• Radiopharmaceuticals and non-radiopharmaceuticals advanced pipelines, with new clinical milestones and expanded partnerships.

• Special Investigation Committee found inappropriate reagent removal and unauthorized contracts by a former executive, but no significant financial impact is expected.

• Cash and cash equivalents decreased by ¥14.79B to ¥33.33B, mainly due to operating losses and tax payments.

Financial highlights

• Q2 FY2025 revenue: ¥8.54B; EBITDA: -¥1.61B; core operating profit: -¥2.61B; net income: -¥2.12B.

• Core operating loss was ¥2.61B, versus a core operating profit of ¥24.77B a year earlier.

• Basic and diluted EPS were both (¥16.40), compared to ¥138.30 and ¥138.11 in the previous year.

• Total assets fell to ¥78.54B from ¥92.77B at year-end 2024.

• 1H FY2025 cash and equivalents fell by ¥10.9B, mainly due to net loss and tax payments.

Outlook and guidance

• Full-year FY2025 guidance unchanged; revenue forecast at ¥49B, net income at ¥15.1B, and core operating profit at ¥21.7B.

• R&D expenses for 2025 projected at ¥5.65B, with capital expenditures of ¥5.05B.

• Focus on closing ongoing negotiations and new deals for FY2026.

• Anticipates increased milestone payments and greater contribution from non-radiopharmaceuticals.

• No revisions to the previously announced financial forecast.