Sumitomo Pharma (4506) Q4 2026 earnings summary

Executive summary

• FY 2025 revenue rose 13.7% year-over-year to JPY 453.3 billion, driven by strong North America sales and milestone revenue from ORGOVYX and GEMTESA, while net profit attributable to owners surged 352.2% to JPY 106.9 billion, reflecting higher operating profit and gains from the partial transfer of the Asian business.

• Achieved a V-shaped recovery in FY2025 through structural reforms, public offering, and major restructuring, including the transfer of Asian subsidiaries.

• Japan revenue declined due to loss of exclusivity for EquMet and drug price revisions, while U.S. revenue surged 34.2% to JPY 337.9 billion, offsetting declines in Japan and Asia.

Financial highlights

• Core operating profit increased 145.4% year-over-year to JPY 105.9 billion, with net profit up JPY 83.2 billion to JPY 106.9 billion and operating profit up 272.6% to JPY 107.3 billion.

• SG&A expenses decreased by JPY 8.4 billion to JPY 159.3 billion, and R&D expenses were reduced by JPY 4.5 billion to JPY 43.9 billion.

• FY 2025 included a JPY 49 billion gain from the transfer of the China and Asia business.

• Cash and cash equivalents at year-end were JPY 44.3 billion, up JPY 21.2 billion from the prior year.

• Gross profit margin for FY 2025 was 56.7%; FY 2026 is forecast at 54.6% due to product mix and higher costs.

Outlook and guidance

• FY 2026 revenue is forecast at JPY 540 billion (+19.1%), with gross profit expected at JPY 295 billion and net profit at JPY 77 billion, reflecting the absence of prior year one-time gains and higher R&D expenses.

• Operating profit is forecast at JPY 90 billion, with R&D expenses planned to rise to JPY 51 billion, focusing on oncology and CNS programs.

• ORGOVYX revenue is projected to reach JPY 209.9 billion, and GEMTESA to exceed JPY 100 billion in FY 2026.

• No dividend forecast for FY 2026 due to market uncertainties; dividend policy remains performance-linked.