Kaken Pharmaceutical (4521) Q2 2027 earnings summary

Executive summary

• H1 FY2026 net sales rose 24.4% YoY to ¥48,957m; operating profit reached ¥10,164m from ¥180m, and profit rose to ¥8,000m from ¥1,002m.

• Growth reflected overseas pharmaceutical contributions, a Johnson & Johnson milestone, and higher crop protection sales.

• Full-year forecast remains unchanged, with results expected in line with plan.

Financial highlights

• Gross profit rose 42.8% YoY to ¥30,809m; cost of sales increased 2.1% to ¥18,147m.

• SG&A declined to ¥20,645m from ¥21,400m; R&D expense fell to ¥9,943m from ¥11,672m, partly reflecting prior-year in-license upfront fees.

• Ordinary profit reached ¥10,708m versus ¥584m; profit before income taxes was ¥10,656m versus ¥1,374m.

• H1 attributable profit was ¥8,000m; prior-year profit included ¥862m of extraordinary gain on investment securities sales.

• Basic EPS was ¥211.29 versus ¥26.41; comprehensive income was ¥9,227m versus ¥389m.

Outlook and guidance

• Full-year forecast: net sales ¥89,900m, operating profit ¥7,900m, ordinary profit ¥8,600m, and attributable profit ¥6,500m; no revision.

• H1 progress against plan: sales 54.5%, operating profit 128.7%, ordinary profit 124.5%, and profit 123.1%.

• Domestic outlook reflects Ekterly sales growth and the largely completed Clenafin shift to authorized generic; overseas FX impact is expected to be minimal.

• SG&A excluding R&D reflects Aadi’s full-year consolidation; pipeline programs and R&D expenses are expected to progress as planned.

• Forecast basic EPS is ¥171.65; annual dividend forecast remains ¥190 per share, split ¥95 interim and ¥95 year-end.