Santen Pharmaceutical (4536) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, rose 0.4% year-over-year to JPY 146.4 billion, driven by new and mainstay product sales, despite NHI price revisions, supply constraints, and a voluntary recall in Japan.

• Core operating profit declined 5.7% year-over-year to JPY 29.7 billion, and net profit was JPY 18.7 billion (-3.0% YoY).

• Launched Catiolanze in EMEA and a ROCK inhibitor in Asia; tapped two new business development opportunities.

• Announced JPY 10.0 billion share buyback in addition to H1, with interim and year-end dividends of JPY 17/share each.

• IFRS net profit attributable to owners decreased 2.6% year-over-year to JPY 18.8 billion, with total comprehensive income dropping 57.4% to JPY 13.0 billion.

Financial highlights

• Revenue rose to JPY 146.4 billion (+0.4% YoY); core operating profit fell to JPY 29.7 billion (-5.7% YoY); net profit was JPY 18.7 billion (-3.0% YoY).

• Gross profit decreased 4.1% year-over-year to JPY 82.9 billion.

• SG&A and R&D expenses decreased, supporting cost optimization.

• Cash flows from operating activities were JPY 28.3 billion, with cash and cash equivalents at JPY 84.4 billion at period end.

• Japan sales impacted by NHI price reduction and Diquas LX recall; overseas regions showed solid growth, especially in EMEA and Asia.

Outlook and guidance

• Maintained full-year forecast with revenue at JPY 302.0 billion and core operating profit at JPY 55.0 billion.

• Full-year revenue forecast for March 2025 is JPY 302.0 billion (flat YoY), with operating profit expected to rise 15.5% to JPY 44.5 billion and net profit to increase 22.0% to JPY 32.5 billion.

• Faster-than-expected progress in H1, but H2 faces co-pay hikes and FX volatility.

• Expecting approval of STN1012700 (myopia) and filing for STN1013800 (ptosis) in Japan.

• Dividend forecast for the year is JPY 34.00 per share.