SANTEN PHARMACEUTICAL CO., LTD.
4536・Prime Market・Pharmaceuticals
Santen Pharmaceutical Co., Ltd. (Single Segment)
A global specialty pharma company focused exclusively on ophthalmology
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Consolidated, Full Year) | ¥291,624 million | ¥300,004 million | ↓ |
| Core Operating Profit (Consolidated, Full Year) | ¥55,143 million | ¥59,380 million | ↓ |
| Operating Profit (Consolidated, Full Year) | ¥47,797 million | ¥46,880 million | ↑ |
| Profit Attributable to Owners of the Parent (Consolidated, Full Year) | ¥37,369 million | ¥36,256 million | ↑ |
| Core Operating Profit Margin | 18.9% | 19.8% | ↓ |
| Operating Profit Margin on Revenue (IFRS) | 16.4% | 15.6% | ↑ |
| Ratio of Equity Attributable to Owners of the Parent | 70.2% | 69.9% | ↑ |
| Basic Earnings Per Share | ¥114.04 | ¥103.98 | ↑ |
| Annual Dividend Per Share | ¥38.00 | ¥36.00 | ↑ |
| Cash Flow from Operating Activities | ¥43,500 million | ¥60,928 million | ↓ |
| Cash and Cash Equivalents at End of Period | ¥80,875 million | ¥92,997 million | ↓ |
| ROE (Return on Equity Attributable to Owners of the Parent) | 12.8% | 12.2% | ↑ |
Business Details
The Santen Group is a global company specializing in ophthalmology, centered on prescription pharmaceuticals, over-the-counter drugs, and medical devices. The company operates across four regions—Japan, China, Asia, and EMEA—and has established leading positions in major ophthalmic therapeutic areas such as glaucoma, dry eye, retinal diseases, and allergic conjunctivitis. Full-year revenue for FY2026 (ending March 2026) was ¥291,624 million. Major sales customers included Suzuken Co., Ltd. (¥36,978 million) and Mediceo Corporation (¥29,977 million).
Recent Overview
Revenue declined, but IFRS operating profit and net profit increased; revenue and profit growth forecast for next fiscal year
In FY2026 (ending March 2026), revenue decreased to ¥291,624 million (down 2.8% year on year) due to drug price revisions, the long-listed product selective co-payment system, and generic entry for Eylea, among other factors. Core operating profit also declined to ¥55,143 million (down 7.1%). On the other hand, IFRS operating profit increased to ¥47,797 million (up 2.0%) and profit attributable to owners of the parent increased to ¥37,369 million (up 3.1%), supported by a gain on transfer of foreign currency translation adjustments (¥5,712 million) associated with the liquidation of an overseas subsidiary. An impairment loss of ¥3,841 million was recorded following the discontinuation of development of two sirolimus products (STN1010904 and STN1010905). For FY2027 (ending March 2027), the company forecasts revenue of ¥311,000 million (up 6.6%) and core operating profit of ¥59,000 million (up 7.0%), representing growth in both revenue and profit. Assumed exchange rates are ¥155 to the US dollar, ¥180 to the euro, and ¥23 to the Chinese yuan.
Key Products
Growth Drivers
- Rapid recovery in Japan sales driven by the resumption of shipments of Diquas LX Eye Drops 3% (December 2025), with FY2027 (ending March 2027) sales forecast at ¥10.4 billion (up 454.2%)
- Creation of a new market through the launch of the myopia progression suppression treatment (Rejusea Eye Drops / Ryjunea) in Japan and Europe, with FY2027 (ending March 2027) sales forecast at ¥6.0 billion (up 273.4%)
- Continued expansion of PreserFlo MicroShunt in Japan, EMEA, and Asia (up 34.2% in FY2026 (ending March 2026), forecast up 19.6% in FY2027 (ending March 2027))
- Continued double-digit growth of Ikervis in EMEA and Asia (up 20.8% in FY2026 (ending March 2026), forecast up 11.2% in FY2027 (ending March 2027))
- Creation of a new therapeutic market through the approval in Japan (December 2025) of the ptosis treatment Upnique (STN1013800), with FY2027 (ending March 2027) sales forecast at ¥1.4 billion
- Expansion of Asia sales through exclusive distribution agreements for VEGF inhibitors (Beovu, Lucentis) in South Korea and Southeast Asia
- Filing for manufacturing and marketing approval in Japan (July 2025) of the ROCK inhibitor netarsudil mesylate (STN1013900), along with expansion in Europe and Asia
- Strengthening of the glaucoma treatment portfolio through the launch of sepetaprost (Setaneo) in Japan (October 2025)
- Securing production capacity and establishing global competitive advantage through investment in a new plant in China
- Growth trajectory toward the FY2029 targets under the FY2025-FY2029 Medium-Term Management Plan of ¥400,000 million in revenue and ¥80,000 million in core operating profit
Risks
- Ongoing impact of drug price revisions in Japan (upper 1% range in FY2025) and the continuing selective co-payment system for long-listed products
- Continued revenue decline for Eylea (a core product in Japan sales) due to generic entry and price cuts (forecast down 14.5% in FY2027 (ending March 2027))
- Risk of sales fluctuation in China due to adjustments in distribution inventory levels and the centralized procurement system
- Foreign exchange risk (euro, US dollar, Chinese yuan): assumed exchange rates for FY2027 (ending March 2027) are ¥155 to the US dollar, ¥180 to the euro, and ¥23 to the Chinese yuan
- Pipeline failure risk following the discontinuation of development of two sirolimus products (STN1010904 and STN1010905), and profit pressure from increased R&D expenses (forecast at ¥27.5 billion in FY2027 (ending March 2027), up 7.6%)
- Cash outflows from share buybacks (¥32,797 million in FY2026 (ending March 2026)) and dividends (¥12,642 million), along with a decline in operating cash flow (¥43,500 million, down 28.6% year on year)
- Impact on the cash conversion cycle from a sharp increase in inventory (¥64,584 million, up 25.2% year on year) associated with the resumption of Diquas LX Eye Drops shipments
- Risks associated with the dissolution and liquidation procedures of three US subsidiaries, including Phacor Inc.
- Continued decline in Japan sales of Alesion due to generic entry (down 15.9% in FY2026 (ending March 2026), forecast down 11.2% in FY2027 (ending March 2027))
Last updated: June 18, 2026