Chugai Pharmaceutical (4519) Q2 2025 earnings summary

Executive summary

• Revenue for the second quarter and first half of 2025 rose 4.6% year-over-year to JPY 578.5 billion, with operating profit up between 3.5% and 5.8% and net income up between 2.1% and 4.3%, driven by strong domestic and overseas sales, especially Actemra exports.

• Growth was supported by new and mainstay products, with overseas demand robust despite NHI drug price revisions and generic penetration in the domestic market.

• Key R&D milestones included progress on orforglipron (Eli Lilly), NXT007, and initiation of new in-house projects, while five early-stage projects were discontinued to prioritize resources.

• Major capital investment of JPY 80 billion announced for a new R&D facility (UKX) at the Ukima site to support increased project volume and environmentally friendly operations.

• Special 100th Anniversary dividends declared, with total forecasted annual dividend per share at JPY 250.00.

Financial highlights

• Revenue: JPY 578.5 billion (+4.6% YoY); Operating profit: JPY 273.3 billion (+5.8% YoY); Net income: JPY 194.4 billion (+4.3% YoY); Core operating profit: JPY 272.0 billion (+3.5% YoY); Core net income: JPY 193.5 billion (+2.1% YoY).

• Domestic sales: JPY 223.3 billion (+2.8% YoY); Overseas sales: JPY 288.1 billion (+7.3% YoY), led by Actemra exports.

• Cost of sales rose 9.4% YoY, with cost-to-sales ratio up to 34.3% due to product mix.

• SG&A expenses decreased by JPY 1.2 billion YoY due to operational efficiency, despite inflation and personnel cost increases.

• Earnings per share (basic): JPY 118.13 (vs. JPY 113.20 YoY).

Outlook and guidance

• Full-year forecasts for Hemlibra and Actemra are expected to be exceeded by over JPY 10 billion each, driven by strong demand and shipment trends.

• FY2025 revenue forecast: JPY 1,190.0 billion (+1.7% YoY); core operating profit: JPY 570.0 billion (+2.5% YoY); core net income: JPY 410.0 billion (+3.2% YoY).

• Annual dividend per share forecast: JPY 250.00, including JPY 150.00 special dividend for the 100th Anniversary.

• Progress against initial forecasts is positive across all segments, with FX tailwinds contributing to results.