Ono Pharmaceutical (4528) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue was ¥117.7 billion, down 1.9% year-over-year, mainly due to lower Opdivo sales from NHI drug price revisions and decreased Merck royalties, partially offset by higher Forxiga sales and BMS royalties.

• Operating profit fell 25.8% year-over-year to ¥30.7 billion, impacted by increased R&D and SG&A expenses, including Deciphera acquisition costs.

• Profit attributable to owners decreased 22.1% year-over-year to ¥24.8 billion.

• The Deciphera Pharmaceuticals acquisition was completed in June 2024, expanding the oncology pipeline and global commercial presence.

Financial highlights

• Revenue: ¥117.7 billion, down 1.9% year-over-year.

• Operating profit: ¥30.7 billion, down 25.8% year-over-year.

• Profit for the period attributable to owners: ¥24.8 billion, down 22.1% year-over-year.

• R&D expenses increased by ¥4.3 billion (17.4%) to ¥28.9 billion.

• SG&A expenses rose by ¥4.4 billion (18.8%) to ¥27.9 billion, including ¥3.3 billion in acquisition-related costs.

Outlook and guidance

• No changes to the full-year FY2024 consolidated financial forecasts; revenue expected at ¥450.0 billion, operating profit at ¥122.0 billion, and profit for the period at ¥91.0 billion.

• The impact of the Deciphera acquisition on consolidated results is under review.

• Assumed annual exchange rate: 1 USD = 145 yen; a 1 yen depreciation may increase revenue by ¥0.6 billion and operating profit by ¥0.2 billion.