Sumitomo Pharma (4506) Q2 2026 earnings summary

Executive summary

• Q2 FY2025 revenue rose 25.7% year-over-year to JPY 227.1 billion, driven by strong North America sales of Orgovyx and Gemtesa, and milestone revenue from Orgovyx.

• Net profit attributable to owners was JPY 98.9 billion, a turnaround from a loss of JPY 32.2 billion last year, reflecting improved business structure and a JPY 49 billion gain from the China-Asia business transfer.

• Core operating profit reached JPY 96.1 billion, up from break-even last year, boosted by the China-Asia business transfer and disciplined cost control.

• Both sales and profit exceeded Q2 forecasts, prompting a revised full-year outlook.

• SG&A and R&D expenses declined due to business structure improvements and realignment of regenerative medicine and cell therapy operations.

Financial highlights

• Operating profit improved to JPY 96.2 billion from a loss of JPY 8.2 billion year-over-year.

• Gross profit rose to JPY 137.4 billion, up JPY 28.9 billion year-over-year.

• North America sales surged 56.4% year-over-year to JPY 163 billion, driven by Orgovyx and Gemtesa.

• Japan sales declined by JPY 6 billion to JPY 46.9 billion, mainly due to loss of exclusivity for key products.

• Cash and cash equivalents at period end were JPY 38.5 billion, mainly due to repayment of borrowings.

Outlook and guidance

• FY2025 revenue forecast raised to JPY 429 billion, up JPY 74 billion from the previous forecast.

• Core operating profit forecast increased to JPY 97 billion, net profit to JPY 92 billion—both record highs.

• Orgovyx FY2025 sales expected to reach JPY 147.9 billion ($1.02 billion), surpassing the $1 billion milestone.

• North America total sales forecast at JPY 313.6 billion, up JPY 65.4 billion from prior guidance.

• Full-year basic EPS forecast increased to 231.57 JPY.