Sumitomo Pharma Co., Ltd.

Business Details

Sumitomo Pharma's core business and domestic group companies are responsible for the manufacturing, procurement, and sale of prescription pharmaceuticals. The segment centers on the psychiatry/neurology area (Latuda, Xeplion/Xeplion TRI) and the diabetes area (Twymeeg, Equa/Eucreas), and in March 2026 obtained manufacturing and marketing approval for the iPS cell-derived product "Amshepri". Co-promotion products with Novo Nordisk (Ozempic Subcutaneous Injection, Wegovy Subcutaneous Injection) were also newly added. Main customers are domestic medical institutions and wholesalers.

Recent Overview

Revenue declined due to end of Equa/Eucreas exclusive marketing period, but cost reductions secured a profit increase

Revenue in the Japan segment for FY2026 (ending March 2026) was ¥92,365 million (down 7.5% year on year). The main cause was the entry of generic products following the end of the exclusive marketing period for Equa/Eucreas. On the other hand, sales growth of Twymeeg and the launch of Xeplion/Xeplion TRI provided some support. Core segment profit increased to ¥12,352 million (up 8.2% year on year), mainly due to a decrease in selling, general and administrative expenses resulting from business structure improvement effects associated with early retirement programs implemented in the prior period. In addition, manufacturing and marketing approval for the world's first iPS cell-derived product "Amshepri" was obtained in March 2026.

Key Products

Growth Drivers

• Continued revenue contribution from the diabetes area through ongoing sales growth of Twymeeg
• Expansion of the psychiatry/neurology area through the full-scale launch of Xeplion/Xeplion TRI sales (company to handle distribution from January 2026 onward)
• Cultivation of a new revenue source through promotional activities for newly partnered products Ozempic and Wegovy
• Continued reduction of selling, general and administrative expenses through business structure improvement effects such as early retirement programs
• New development in the regenerative and cell medicine business through obtaining manufacturing and marketing approval for the world's first iPS cell-derived product "Amshepri"

Risks

• Continuing impact of generic entry and revenue decline following the end of the exclusive marketing period for Equa/Eucreas (December 2024)
• Ongoing price reduction pressure from drug price revisions
• Continuation of healthcare cost containment policies in the domestic pharmaceutical market
• Obligation to conduct post-marketing clinical trials and post-marketing surveillance studies associated with the conditional and time-limited approval of Amshepri, and uncertainty regarding obtaining full approval
• Risk that sales expansion of newly partnered products (Xeplion, Ozempic, Wegovy) may not proceed as planned