Ono Pharmaceutical (4528) Q2 2025 earnings summary

Executive summary

• Q2 FY2024 consolidated results include Deciphera Pharmaceuticals from July to September, with provisional goodwill recorded; intangible asset amortization to be reflected in Q3.

• Core-basis financial results introduced to better reflect core business performance, excluding temporary and non-core items.

• Decision made not to exercise the option for itolizumab from Equillium for strategic reasons.

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

Financial highlights

• Q2 FY2024 revenue was ¥240.3 billion, down 7.1% YoY, mainly due to lower domestic Opdivo sales and reduced royalty income.

• Operating profit dropped to ¥55.9 billion, a decrease of 42.4% YoY, with profit attributable to owners at ¥41.6 billion, down 44.1% YoY.

• R&D expenses increased by 39.4% YoY to ¥68.8 billion; SG&A expenses rose by 22.7% YoY to ¥58.4 billion.

• Royalty and other revenue fell to ¥77.0 billion (-22.0% YoY), mainly due to lower rates and absence of prior year’s litigation settlement income.

• Basic earnings per share was ¥88.66, down from ¥153.33 YoY.

Outlook and guidance

• FY2024 revenue forecast revised to ¥485.0 billion, down ¥17.7 billion (-3.5%) YoY.

• Operating profit forecasted at ¥82.0 billion (-48.7% YoY); core operating profit at ¥110.0 billion.

• Profit attributable to owners forecasted at ¥58.0 billion, down 54.7% YoY.

• R&D expenses projected at ¥147.0 billion (+31.0% YoY); SG&A at ¥123.0 billion (+22.7% YoY).

• Forxiga sales forecast raised to ¥89.0 billion, and Qinlock sales expected at ¥23.5 billion for FY2024.