Kyowa Kirin (4151) investor relations material

Executive summary

• Q1 FY2026 revenue reached JPY 118.5 billion, up 13.1% year-over-year, driven by global product growth, technology out-licensing, and FX tailwinds.

• Core operating profit surged 78% to JPY 20.0 billion, with profit attributable to owners of parent nearly doubling to JPY 12.0 billion.

• Comprehensive income swung to JPY 16.1 billion from a loss of JPY 4.2 billion a year ago.

• Upward revision of FY2026 core operating profit due to discontinuation of the Rocatinlimab clinical program, though net profit guidance remains unchanged due to closing costs.

• Announced reorganization of the research institute to enhance drug discovery capabilities.

Financial highlights

• Revenue increased by JPY 13.7 billion year-over-year, with overseas sales ratio rising to 77%.

• Gross profit rose to JPY 88.2 billion (+10% YoY), though gross margin declined from 77% to 75%.

• R&D expenses decreased to JPY 27.2 billion, supporting higher operating profit.

• Net profit doubled to JPY 12.0 billion (+95% YoY), despite impairment losses related to Rocatinlimab.

• Cash and cash equivalents at quarter-end were JPY 249.5 billion, up JPY 30.8 billion from year-end 2025.

Outlook and guidance

• FY2026 full-year revenue forecast is JPY 520.0 billion, with core operating profit revised up to JPY 130.0 billion and net profit expected at JPY 75.0 billion.

• Dividend forecast for FY2026 increased to JPY 70 per share.

• No change to mid- to long-term financial targets: aiming for ROE in the low teens and a core operating margin of 30% in the early 2030s.

• Discontinuation of Rocatinlimab program expected to reduce future SG&A and R&D expenses, positively impacting core operating profit.

• Core operating profit increase expected from Rocatinlimab program discontinuation, but net profit unchanged due to closing costs and impairment.