Astellas Pharma Inc.
4503・Prime Market・Pharmaceuticals
Business
Astellas Pharma is a major Japanese pharmaceutical company established in 2005 through the merger of Yamanouchi Pharmaceutical and Fujisawa Pharmaceutical. It comprises 80 consolidated subsidiaries and 6 equity-method affiliates, and operates the research, development, manufacturing, and sale of pharmaceuticals as a single segment. Its core products include XTANDI (enzalutamide) for prostate cancer, PADCEV (enfortumab vedotin) for urothelial cancer, VYLOY (zolbetuximab) for gastric adenocarcinoma, and IZERVAY (avacopan) for age-related macular degeneration. The company operates across all regions, including the United States, Europe, Japan, China, and emerging markets, with revenue reaching ¥2,139,245 million in FY2026 (ending March 2026). Research and development is based on a Focus Area approach, with concentrated investment in four Primary Focus areas: cancer immunity, targeted protein degradation, gene therapy, and regenerative medicine.
Business Model
In addition to in-house drug discovery, the company leverages licensing and co-commercialization agreements with partners such as Seagen (PADCEV) and Medivation (XTANDI) to maximize product value globally. In the United States, sales are made through major wholesalers such as the McKesson Group (14.6% of revenue) and the Cencora Group (14.4% of revenue). Through cost optimization under SMT (Sustainable Margin Transformation), the company aims to keep the increase in SG&A expenses below the rate of revenue growth, thereby achieving continuous improvement in the core operating margin.
Company Strengths
All five key strategic products—PADCEV (+34.8%), VYLOY (+415.6%), IZERVAY (+33.2%), VEOZAH (+37.7%), and XOSPATA (+5.7%)—achieved growth. Total sales of key strategic products in FY2026 (ending March 2026) reached ¥480.3 billion, reflecting progress in reducing dependence on XTANDI. PADCEV was driven by the addition of the MIBC indication, while VYLOY's growth was driven by increased penetration of Claudin 18 testing.
Through Sustainable Margin Transformation, in FY2026 (ending March 2026) the increase in SG&A expenses was contained to +2.0%, significantly below the +11.9% growth in revenue, while R&D expenses were reduced by △3.9%. Core operating profit rose +41.6% year on year to ¥555,681 million, with a core operating profit margin reaching 26.0%. The Management Plan 2026 targets 30% by fiscal year 2027.
Multiple Primary Focus programs advanced to Phase III trials from the end of fiscal 2024 through fiscal 2025, including the KRAS G12D degrader ASP3082, which moved to Phase III after achieving clinical proof of concept in pancreatic adenocarcinoma and non-small cell lung cancer; the anti-Claudin 18.2/CD3 bispecific antibody ASP2138, which achieved clinical proof of concept in gastric adenocarcinoma; and the cell therapy ASP7317, which achieved clinical proof of concept in age-related macular degeneration.
ENVALITH's Perspective
Performance Trend
Revenue accelerated over five years, growing 65% from ¥1,296,163 million (FY2022, ended March 2022) to ¥2,139,245 million (FY2026, ending March 2026). Full-base operating profit bottomed out at ¥25,518 million in FY2024 (ended March 2024), then recovered sharply to ¥41,039 million in FY2025 (ended March 2025) and ¥382,633 million in FY2026 (ending March 2026). Core operating profit reached ¥555,681 million (core operating profit margin of 26.0%), a substantial improvement of +41.6% year on year. The main driver of the full-base profit recovery was the shrinkage of the large impairment and restructuring charges (other expenses of ¥235,768 million) recorded in the prior period to ¥72,440 million in the current period. As an external factor, euro depreciation (down ¥11 year on year) contributed approximately ¥30,100 million positively to revenue. For the next fiscal year (FY2027, ending March 2027), revenue is forecast at ¥2,220,000 million (+3.8%) and core operating profit at ¥620,000 million (+11.6%), indicating continued growth.
Growth Strategy
Pursuing long-term growth through three pillars: maximizing the value of key strategic products, accelerating the pipeline, and SMT cost optimization
PADCEV is ramping up smoothly in the US following expansion of the MIBC indication, while VYLOY is rapidly expanding across all launch regions as Claudin 18 testing becomes more widespread. For the next fiscal year, combined key strategic product sales are projected at ¥610,000 million (+27.0%), a plan designed to offset the decline in XTANDI revenue (△5.3%). Extending product lifecycles through indication expansion and new market development remains the core of the revenue base.
In FY2026 (ending March 2026), cost optimization achieved approximately ¥11.0 billion in SG&A expense reductions and approximately ¥10.0 billion in R&D expense reductions. For the next fiscal year, the company will continue reducing SG&A expenses to ¥800,000 million (△7.0%) while expanding R&D expenses to ¥355,000 million (+12.8%), balancing growth investment with profit improvement. The aim is to further improve the core operating profit margin.
The next-generation pipeline is being built around four Primary Focus areas (oncology, urology, ophthalmology, and immunology). For the next fiscal year, the company plans to expand clinical development expenses, including new Phase III trials (R&D expenses +12.8%). A decision was made to strategically discontinue AT132 (gene therapy), leading to a reassessment of asset value (impairment loss of ¥16.4 billion recorded), reflecting a selective focus on concentrating resources on promising programs.
Last updated: July 19, 2026