Mochida Pharmaceutical Co.,Ltd.

Business Details

The Mochida Pharmaceutical Group operates a pharmaceutical-related business (manufacturing and marketing of new drugs, generic drugs, and biosimilars focused on the cardiovascular, gastrointestinal, obstetrics/gynecology, and psychiatric fields) and a healthcare business (skincare products under the Collage Furufuru and Collage Repair brands). The reportable segment is limited to the pharmaceutical-related business, and the consolidated entity as a whole, including the healthcare business, is effectively disclosed as a single segment. Major customers are the four leading pharmaceutical wholesalers (Mediceo Corporation, Alfresa Co., Ltd., Suzuken Co., Ltd., and Toho Pharmaceutical Co., Ltd.), and domestic sales account for over 90% of consolidated net sales.

Recent Overview

In FY2026 (ending March 2026), both net sales and profit increased significantly, with multiple approvals and alliances achieved

In FY2026 (ending March 2026), net sales reached ¥116,951 million (up 11.2% year on year), operating profit ¥10,147 million (up 24.9% year on year), and net income ¥7,903 million (up 39.0% year on year), achieving significant profit growth at every level. Equity-method investment income of ¥793 million, resulting from the conversion of And Pharma Co., Ltd. into an equity-method affiliate (October 2025), boosted ordinary profit. Development and commercialization progressed, including the approval of Tocilizumab BS "MA" (March 2026), the application for approval of MD-712 (April 2026), and the launch of the cartilage repair material Mochigel (December 2025). On the other hand, operating cash flow turned negative due to an increase in advance payments (¥10,982 million) and other factors, and new long-term borrowings of ¥10,000 million were recorded. For FY2027 (ending March 2027), net sales are forecast at ¥126,000 million (up 7.7% year on year) and net income at ¥10,000 million (up 26.5% year on year).

Key Products

Growth Drivers

• Continued sales growth of core new drugs (Treprost +47%, Uriadec +36%, Lialda +11%, Goofis +8% year on year)
• Expansion of the product lineup through the application for approval of MD-712 (inhaled powder formulation for pulmonary hypertension treatment) in April 2026
• Strengthening of the generic drug business through the approval of Tocilizumab BS "MA" (biosimilar for rheumatoid arthritis, etc.) in March 2026
• Continued recognition of equity-method investment income following the conversion of And Pharma Co., Ltd. into an equity-method affiliate
• Expansion of the authorized generic "Ethyl Icosapentate 'Mochida'" (launched December 2025) and overall generic drug business
• Launch of the biomaterials business, centered on the cartilage repair material Mochigel (launched December 2025)
• Expansion of domestic and overseas alliances, including the transfer of Uriadec manufacturing and marketing approval (agreement with Fuji Pharma) and expansion of Dinagest into South Korea and Thailand (agreement with LG Chem)
• Continued growth of both brands in the healthcare business (Collage Furufuru and Collage Repair)
• Promotion of "strengthening core business profitability," "continued investment in growth businesses," and "strengthening the management foundation supporting growth" under the 25-27 Medium-Term Management Plan

Risks

• Downward pressure on sales of existing products due to annual drug price revisions and the long-listed drug selection-based medical care system introduced in October 2024
• Structural decline in sales of long-listed products due to policies promoting generic drug use (Movicol sales are expected to decline 78% year on year in FY2027 (ending March 2027))
• Risk of sales concentration among the four major customers (Mediceo ¥28,156 million, Alfresa ¥18,081 million, Suzuken ¥17,252 million, Toho Pharmaceutical ¥10,333 million)
• Risk of delays or failures in approval of R&D pipeline products (HLC-001 and MD-352 are in clinical stages, dMD-002 and dMD-003 are in confirmatory trial stages)
• Operating cash flow turning negative and a significant decrease in cash and cash equivalents (from ¥48,151 million to ¥31,058 million) due to an increase in advance payments (¥10,982 million), among other factors
• Increased financial leverage due to the new recording of ¥10,000 million in long-term borrowings (equity ratio declined from 81.6% to 76.8%)
• Risk of fair value fluctuation and changes in valuation difference on available-for-sale securities due to the significant increase in investment securities (from ¥15,022 million to ¥39,228 million)
• Foreign exchange risk (increasing impact due to expansion of in-licensed products and overseas operations; a foreign exchange loss of ¥242 million was recorded in the current period)
• R&D expenses are planned to increase significantly to ¥14,500 million (11.5% of net sales) in FY2027 (ending March 2027), potentially pressuring profits