Ono Pharmaceutical (4528) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2024 decreased by 3.9% year-over-year to ¥374.6 billion, with significant declines in core operating profit and profit attributable to owners.

• Completed purchase price allocation for Deciphera Pharmaceuticals, recording intangible assets, inventory revaluation, and goodwill in Q3 FY2024.

• Entered a license and collaboration agreement with LigaChem Biosciences for ADCs, with upfront and milestone payments recorded as R&D expenses.

Financial highlights

• Core operating profit fell to ¥97.7 billion, a decrease of 36.8% year-over-year; core profit for the period dropped 38.1% to ¥76.5 billion.

• IFRS basis operating profit decreased 51.1% to ¥70.8 billion, and profit attributable to owners declined 48.8% to ¥56.6 billion.

• R&D expenses rose to ¥103.4 billion, up 35.1% year-over-year; SG&A expenses increased to ¥90.2 billion, up 23.0%.

• Royalty and other revenue declined by 17.7% due to lower royalty rates and absence of prior year’s litigation settlement income.

• Basic earnings per share fell to ¥120.49 from ¥229.08 year-over-year.

Outlook and guidance

• No changes to the FY2024 forecast: revenue expected at ¥485.0 billion, core operating profit at ¥110.0 billion, and core profit for the year at ¥81.0 billion.

• Full-year operating profit forecast at ¥82.0 billion (down 48.7%), and profit attributable to owners at ¥58.1 billion (down 54.6%).

• R&D expenses for FY2024 forecasted at ¥143.0 billion (+31.8% year-over-year).

• Dividend forecast maintained at ¥80 per share for the full year.

• Exchange rate sensitivity: every ¥1 depreciation of the yen increases revenue by ¥0.4 billion and decreases operating profit by ¥0.2 billion.