ONO PHARMACEUTICAL CO., LTD.
4528・Prime Market・Pharmaceuticals
Pharmaceuticals Business
Single business segment engaged in the research and development, manufacturing, and sale of prescription pharmaceuticals
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Full Year) | ¥515,785 million | ¥486,871 million | ↑ |
| Core Operating Profit (Full Year) | ¥137,135 million | ¥112,667 million | ↑ |
| IFRS Operating Profit (Full Year) | ¥92,236 million | ¥59,747 million | ↑ |
| Profit for the Year Attributable to Owners of Parent (Full Year) | ¥69,767 million | ¥50,047 million | ↑ |
| Core Profit for the Year (Full Year) | ¥103,499 million | ¥90,361 million | ↑ |
| Product Sales Revenue | ¥342,607 million | ¥330,763 million | ↑ |
| Royalty and Other Income | ¥173,178 million | ¥156,107 million | ↑ |
| Equity Attributable to Owners of Parent Ratio | 76.9% | 73.5% | ↑ |
| Cash Flows from Operating Activities | ¥136,821 million | ¥82,459 million | ↑ |
| Basic Earnings per Share | ¥148.49 | ¥106.55 | ↑ |
Business Details
The sole business segment of the Ono Pharmaceutical group. The company focuses its research on oncology, immunology, inflammation, and neurology, with the anti-PD-1 antibody Opdivo as its core product. In addition to domestic product sales, the group's main revenue sources include overseas product sales from Deciphera Pharmaceuticals (acquired in June 2024) and royalty income from Bristol Myers Squibb, Merck, and others. Management resources are concentrated in the single Pharmaceuticals Business segment, with global operations spanning Japan, the United States, Europe, and Asia.
Recent Overview
Full contribution from Deciphera and increased royalty income drove higher revenue and profit; a significant revenue decline is expected next fiscal year due to the termination of the Forxiga agreement
In FY2026 (ending March 2026), the company achieved growth at every profit level, with revenue of ¥515,785 million (up 5.9% year on year), core operating profit of ¥137,135 million (up 21.7% year on year), and IFRS operating profit of ¥92,236 million (up 54.4% year on year). This was driven by expanded overseas product sales of Qinlock and Romvimza due to a full 12 months of Deciphera consolidation (versus 9 months in the prior period), as well as increased royalty income from BMS and others. On the other hand, in FY2027 (ending March 2027), revenue is forecast to decline to ¥455,000 million (down 11.8% year on year) due to the termination of the co-promotion agreement for Forxiga with AstraZeneca. While core operating profit is expected to decline to ¥124,000 million (down 9.6% year on year), IFRS operating profit is forecast to increase to ¥94,000 million (up 1.9% year on year) due to the disappearance of one-time expenses.
Key Products
Growth Drivers
- Steady increase in royalty income from BMS, Merck, and others (forecast of ¥185,000 million in FY2027 (ending March 2027), up 6.8% year on year)
- Growth in overseas product sales driven by expanded prescriptions of Qinlock (gastrointestinal stromal tumor) and Romvimza (TGCT)
- Expansion of the patient population for Opdivo through approval of new indications (hepatocellular carcinoma, MSI-H/dMMR colorectal cancer, etc.)
- Expanded contribution from new products following approval of Braftovi (encorafenib) in Japan and South Korea
- Overseas expansion through the U.S. approval application for Velexbru Tablets (relapsed/refractory primary central nervous system lymphoma)
- Enhancement of the late-stage pipeline through progress of the Phase III trials for ONO-8531 (povetacicept) in IgA nephropathy and membranous nephropathy
- New product candidate through the domestic approval application for ONO-2017 (cenobamate) for epileptic partial seizures
- A robust pipeline of 28 products in clinical development (19 of which are in-house discoveries)
Risks
- Significant decline in product sales revenue in FY2027 (ending March 2027) due to the termination of the Forxiga co-promotion agreement with AstraZeneca (forecast decline of 21.2% year on year to ¥270,000 million)
- Decline in domestic sales of Opdivo IV Infusion due to intensifying competition and drug price reductions (down 5.0% year on year in FY2026, ending March 2026)
- Significant decrease in sales of Glactiv Tablets due to the impact of generic products (down 27.9% year on year in FY2026, ending March 2026)
- Downward pressure on IFRS profit from increased amortization of intangible assets associated with the Deciphera acquisition (¥25.6 billion in FY2026, ending March 2026, versus ¥14.6 billion in the prior period)
- Profit pressure from continued high levels of research and development expenses (¥147,043 million in FY2026, ending March 2026, approximately 28.5% of revenue)
- Emerging risk of development discontinuation due to failure to meet primary endpoints in Opdivo-related Phase III trials, such as perioperative therapy for bladder cancer and first-line treatment for gastric cancer
- Risk of gradual decline in royalty income due to changes in royalty rates or patent expirations
- Foreign exchange risk (forecast rate of ¥155 to the dollar for FY2027, ending March 2027) affecting overseas sales and royalties
Last updated: July 8, 2026