Fuji Pharma Co.,Ltd.

Business Details

The Fuji Pharma Group is a single-segment company engaged in the development, manufacturing, and sale of pharmaceuticals. Centered on injectable products such as hormone preparations and contrast media for the obstetrics and gynecology field, the company operates a Women's Healthcare Product Group, biosimilars, and a Global CMO Business centered on its Thai subsidiary OLIC. Domestically, MRs (medical representatives) operate from 5 locations nationwide, with major sales customers including MEDIPAL HOLDINGS CORPORATION (30.2% of sales), Alfresa Corporation (15.2%), and Suzuken Co., Ltd. (9.9%). Net sales for the first half of FY2026 (ending March 2026) were ¥29,716 million (up 23.3% year on year).

Recent Overview

Net sales and operating profit rose substantially, but net profit declined sharply due to a ¥3,519 million valuation loss on investment securities

For the first half of FY2026 (ending March 2026) (October 2025 to March 2026), net sales were ¥29,716 million (up 23.3% year on year) and operating profit was ¥4,398 million (up 90.8% year on year), representing substantial growth in both revenue and profit. However, due to the recognition of a ¥3,519 million valuation loss on investment securities, interim profit before income taxes and other adjustments was limited to ¥683 million, and profit attributable to owners of parent for the interim period came to ¥713 million (down 44.6% year on year). Completion of the exercise of stock acquisition rights generated ¥3,300 million in stock issuance proceeds, increasing both common stock and capital reserves by ¥1,651 million each. The full-year earnings forecast remains unchanged (net sales of ¥59,250 million, operating profit of ¥6,120 million). The drug price revision rate was limited to negative 0.75% due to the effect of repricing of unprofitable products.

Key Products

Growth Drivers

• Steady market penetration of new women's healthcare drugs (Alyssa Combination Tablets, Effmeno Capsule 100mg, Utrogestan Vaginal Capsule 200mg) and strengthened information-provision activities by dedicated MRs
• Expansion of the biosimilar business: establishment of a 6-product lineup following approval of 3 products in September 2025, with Aflibercept sales starting in January 2026 and preparations underway for launch of the other 2 formulations within 2026
• Progress in line with plan for the Global CMO Business (OLIC) and acquisition of new contract manufacturing orders
• Growth in sales of hematology and gastroenterology products supporting the 'Other' category
• Advancement of the medium-term management plan (through FY2029, ending March 2029) based on the Long-Term Vision 2035: four growth strategies of women's healthcare, biosimilars, Global CMO, and the next growth driver

Risks

• Downward pressure on drug prices from annual drug price revisions (the drug price revision rate for the current interim period was negative 0.75% overall)
• Increased costs from rising raw material and energy prices and the continued weak yen trend
• Downward pressure on net profit from special loss risks such as valuation losses on investment securities (¥3,519 million recognized in the current interim period)
• Foreign exchange and financial market volatility risk, including derivative valuation losses (¥71 million in the current interim period)
• Intensifying competition for existing products due to strengthened generic drug promotion policies and healthcare cost optimization measures
• Expanding working capital burden due to increased inventories (up ¥3,129 million in the current interim period)