Ono Pharmaceutical (4528) Q1 2027 earnings summary

Executive summary

• FY2026Q1 revenue declined 8.9% year-over-year to 116.2 JPY billion, mainly due to the end of the FORXIGA co-promotion agreement in Japan and lower Opdivo sales.

• Despite lower revenue, core operating profit rose 22.5% year-over-year to 38.7 JPY billion, driven by reduced costs, lower R&D expenses, and higher royalty income.

• Core profit for the period increased 21.9% to 30.2 JPY billion.

• Profit attributable to owners increased 36.7% to 24.2 JPY billion on an IFRS basis.

• Overseas sales of QINLOCK and ROMVIMZA grew significantly, and royalty income from Opdivo and other products continued to increase.

Financial highlights

• Sales revenue: 116.2 JPY billion (down 8.9% YoY); core operating profit: 38.7 JPY billion (up 22.5% YoY); core profit: 30.2 JPY billion (up 21.9% YoY).

• IFRS operating profit: 30.7 JPY billion (up 39.4% YoY); profit before tax: 31.3 JPY billion (up 38.0% YoY).

• Basic EPS: 51.40 JPY (up from 37.62 YoY); core EPS: 64.31 JPY (up from 52.79 YoY).

• Total assets: 1,084.4 JPY billion; equity ratio: 79.9%; cash and cash equivalents: 219.5 JPY billion.

• Goods and products sales: 67.9 JPY billion (down 22.6% YoY); Royalty and others: 48.2 JPY billion (up 21.2% YoY).

Outlook and guidance

• No change to the previous forecast: FY2026 revenue expected at 455.0 JPY billion (-11.8% YoY), core operating profit at 124.0 JPY billion (-9.6% YoY), and core profit for the year at 93.0 JPY billion (-10.1% YoY).

• Profit attributable to owners forecast: 71.0 JPY billion (up 1.8% YoY); basic EPS forecast: 151.09 JPY.

• Decline in revenue and profit mainly attributed to the end of the FORXIGA co-promotion agreement.

• R&D investment to remain at approximately 30% of net sales to support future growth.