CHUGAI PHARMACEUTICAL CO., LTD.
4519・Prime Market・Pharmaceuticals
Business
Chugai Pharmaceutical, founded in 1925, is a research-driven pharmaceutical company that entered into a strategic alliance in 2002 with Roche Holding as its parent company. Operating under the Pharmaceuticals Business (Single Segment), it markets products domestically with a focus on the oncology and specialty areas, while exporting its own originated products such as Hemlibra (ACE910/RG6013) and Actemra overseas through Roche's global network. In FY2025 (ending December 2025), revenue reached ¥1,257,941 million, with a Core operating margin of 49.5%, giving the company one of the highest profitability levels among domestic pharmaceutical companies. It forms a corporate group comprising 15 subsidiaries and 2 parent/subsidiary companies, and maintains R&D and sales bases across Europe, the United States, and Asia.
Business Model
Domestically, the company leverages its right of first refusal on Roche's development candidates to secure a stable revenue base through exclusive sales of Roche products. Meanwhile, for its own in-house created products (Hemlibra, Actemra, etc.), it grants overseas rights to Roche and receives export sales, royalties, and profit share in return. For FY2025 (ending December 2025), overseas product sales revenue was ¥605,400 million (up 12.8% year on year), and other sales revenue (royalties, etc.) was ¥180,100 million (up 4.3% year on year). Research and development expenses account for 14.3% of sales revenue, realizing a high-profitability model that concentrates management resources on creating innovation.
Company Strengths
Six products and nine projects—including Actemra, Alecensa, Hemlibra, Enspryng (SA237/RG6168), and nemolizumab—have received FDA Breakthrough Therapy designation, earning international recognition for the company's strong in-house drug discovery capabilities. Efforts to explore new modalities such as middle molecules are also underway.
Core net income for FY2025 (ending December 2025) reached ¥451,000 million (up 13.6% year on year), marking nine consecutive years of profit growth. The Core operating profit margin stood at 49.5%, and Core ROIC was 43.9% (up 1.0 percentage point year on year), maintaining top-tier profit efficiency within the domestic pharmaceutical industry.
Based on the basic alliance agreement concluded in 2001, the company has secured both exclusive domestic distribution rights for Roche products and a platform for global expansion of its own products. In FY2025 (ending December 2025), sales to Roche reached ¥724,053 million (57.6% of revenue), establishing a unique business model that enables low-cost global expansion.
ENVALITH's Perspective
Performance Trend
Revenue increased 25.8% over five fiscal years, from ¥999,759 million in FY2021 to ¥1,257,941 million in FY2025. Q1 FY2026 revenue (¥321,747 million, up 11.5% year on year) represented a progress rate of 23.9% against the full-year forecast of ¥1,345,000 million, in line with plan. Core Operating Profit in Q1 FY2026 was ¥163,270 million (up 17.1% year on year), with profit growth outpacing revenue growth. As an external factor, yen depreciation has been boosting profitability on overseas exports, and the cost of sales ratio for products and merchandise continued to improve, reaching 31.7% (a 2.0 percentage point improvement year on year). Free cash flow improved substantially to the equivalent of ¥112,200 million (up 162.8% year on year). Meanwhile, net cash decreased by the equivalent of ¥129,600 million in Q1 FY2026 due to a dividend payment of ¥241,990 million (the year-end portion of the 100th anniversary commemorative dividend).
Growth Strategy
Five reforms under "TOP I 2030" aimed at doubling R&D output and launching a proprietary global product every year
In addition to continued growth of Vabysmo (Specialty area, up 11.6% year-on-year) and Polivy/Phesgo (Oncology area, up 4.9% year-on-year), the company is promoting the creation of new revenue sources through the expanded indication of Lunsumio (RG7828) for large B-cell lymphoma (approved March 2026) and the launch of Elevidys (Duchenne muscular dystrophy, launched February 2026).
Exports of Hemlibra (ACE910/RG6013) to Roche and NEMLUVIO to Galderma increased significantly, with overseas product sales in the first quarter of FY2026 (ending March 2026) reaching ¥180,148 million (up 14.9% year-on-year). Royalty income related to NEMLUVIO also increased, expanding other revenue to ¥30,170 million (up 5.2% year-on-year).
Development resources are being concentrated on promising products such as the KRAS G12C inhibitor RG6330 (first-line treatment for non-small cell lung cancer; global Phase III trial initiated January 2026) and the PI3Kα inhibitor RG6114 (breast cancer; global Phase III trials initiated February and March 2026). R&D expenses were maintained at ¥41,887 million (13.0% of revenue).
The company is rationalizing development projects with low probability of success and concentrating resources on promising products, including the discontinuation of development of GYM329 (spinal muscular atrophy, facioscapulohumeral muscular dystrophy), discontinuation of second-line hepatocellular carcinoma development for Tecentriq, and discontinuation of DMD development for Enspryng (SA237/RG6168) (Roche's decision).
The full-year FY2026 (ending March 2026) dividend forecast is ¥132 per share for the year (Core payout ratio of 44.7%). For the full year of FY2025 (ended March 2025), an annual dividend of ¥272 was paid, including a ¥150 commemorative dividend for the company's 100th anniversary. The company intends to continue stable shareholder returns based on the Core payout ratio as its key metric, while maintaining net cash equivalent of ¥850,100 million.
Last updated: July 17, 2026