Kaken Pharmaceutical (4521) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 declined 23.4% year-over-year to ¥39,356 million, mainly due to the absence of a large upfront payment received in the prior year and increased competition in domestic pharmaceuticals.

• Operating profit dropped sharply to ¥203 million, reflecting higher R&D and SG&A expenses, including integration costs from the Aadi acquisition.

• Profit attributable to owners fell to ¥992 million, down 93.0% year-over-year.

• Strategic focus on rare diseases and pipeline expansion, with two new in-licensed HAE treatments and a dedicated rare disease team established.

Financial highlights

• Gross profit for the period was ¥17,776 million, compared to ¥34,103 million in the previous year.

• R&D expenses increased by ¥5,698 million to ¥11,672 million, driven by upfront payments and pipeline progress.

• Comprehensive income fell to ¥379 million, a 97.2% decrease year-over-year.

• Basic earnings per share for the period were ¥26.16, compared to ¥377.23 in the prior year.

• Cash and cash equivalents at period end: ¥57,105 million, down from ¥83,987 million at the previous period-end.

Outlook and guidance

• FY2025 net sales forecast revised downward to ¥86,300 million, reflecting increased competition and lower expectations for domestic pharmaceuticals.

• Operating profit forecast reduced to ¥2,100 million, mainly due to higher R&D and SG&A expenses.

• Profit forecast lowered to ¥2,300 million.

• R&D expenses expected to reach ¥25,400 million for FY2025.

• Annual dividend forecast is ¥190.00 per share.