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 of ORGOVYX® and GEMTESA®, and milestone revenue, 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 through structural reforms, cost controls, and major restructuring, including the transfer of Asian subsidiaries and a public offering of new shares.

• FY 2026 guidance targets revenue of JPY 540.0 billion, led by continued expansion of ORGOVYX® and GEMTESA®, and the launch of next-generation growth engines.

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.

• U.S. revenue surged 34.2% to JPY 337.9 billion, while Japan revenue declined by JPY 7.5 billion to JPY 92.4 billion due to loss of exclusivity and drug price revisions.

• SG&A and R&D expenses declined due to business structure improvements and cost controls; SG&A fell by JPY 8.4 billion to JPY 159.3 billion, R&D decreased by JPY 4.5 billion to JPY 43.9 billion.

• FY 2025 included a one-time 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.

Outlook and guidance

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

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

• ORGOVYX® and GEMTESA® are forecast to exceed JPY 200 billion and JPY 100 billion in revenue, respectively, with a large sales milestone for ORGOVYX® ($325 million) expected in Q3 if sales reach $1 billion.

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