Nxera Pharma (4565) Q2 2026 earnings summary

Executive summary

• Revenue grew 25.3% year-over-year to JPY 18,910 million for the six months ended June 30, 2026, with both commercial and platform businesses turning profitable and strong external validation of partnered science.

• Core operating profit surged to JPY 6,494 million, up JPY 6,129 million year-over-year, reflecting improved recurring cash generation.

• Significant progress in commercial product adoption, R&D milestones, and strategic partnerships, including new launches and regulatory filings in APAC.

• The company is transitioning from an investment phase to a delivery phase, focusing on expanding its product portfolio, partnerships, and operating four value engines: products, platforms, pipeline, and partnerships.

• Returned to profitability with net profit of JPY 1,591 million, reversing a net loss of JPY 3,137 million in the prior year period.

Financial highlights

• Revenue increased to JPY 18,910 million (+25.3% YoY), driven by milestone revenue and product sales; core operating profit rose to JPY 6,494 million (+1,684% YoY); operating profit improved to JPY 1,881 million from a loss of JPY 2,756 million.

• Net profit reached JPY 1,591 million (vs. net loss of JPY 3,137 million YoY); EPS: 17.54 yen (basic).

• Commercial products PIVLAZ® and QUVIVIQ® saw sales of JPY 6,334 million (+9.1%) and JPY 3,598 million (+126.9%) respectively.

• SG&A and R&D expenses decreased to JPY 6,953 million (-8% YoY) and JPY 6,000 million (-20% YoY), tracking at 49% and 50% of full-year forecasts.

• Cash and cash equivalents at period end: JPY 17,748 million.

Outlook and guidance

• FY2026 revenue forecast: JPY 33,800–48,800 million; core operating profit: JPY 7,800–22,800 million; operating profit: JPY 700–15,700 million.

• Net product sales reached 51% of the JPY 19.5 billion+ annual target by mid-year; targeting JPY 40–50 billion in net product sales and >30% operating margin by 2030.

• PIVLAZ® projected revenue: JPY 13,800–14,200 million; QUVIVIQ®: JPY 5,000–6,000 million.

• Assumes JPY 12,500 million in milestone income and JPY 3,500 million cost reduction in R&D and SG&A.

• Four AI-led discovery projects and four clinical-stage U.S. programs targeted by 2028.