KYORIN Pharmaceutical Co., Ltd.
4569・Prime Market・Pharmaceuticals
Kyorin Pharmaceutical Co., Ltd. (Pharmaceuticals Business, single segment)
Single-segment business centered on the manufacture and sale of domestic prescription pharmaceuticals
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (consolidated, full year) | ¥126,257 million | ¥130,087 million | ↓ |
| Operating profit (consolidated, full year) | ¥3,567 million | ¥12,567 million | ↓ |
| Ordinary profit (consolidated, full year) | ¥4,031 million | ¥13,219 million | ↓ |
| Profit attributable to owners of parent (consolidated, full year) | ¥3,448 million | ¥9,086 million | ↓ |
| Gross profit (consolidated, full year) | ¥51,622 million | ¥59,535 million | ↓ |
| R&D expenses | ¥12,060 million | ¥10,515 million (back-calculated from 14.7% year-on-year increase) | ↑ |
| Operating margin | 2.8% | 9.7% | ↓ |
| Equity ratio | 72.9% | 70.4% | ↑ |
| Cash flow from operating activities | ¥6,381 million | ¥3,506 million | ↑ |
| Earnings per share | ¥60.03 | ¥158.17 | ↓ |
| Net assets per share | ¥2,479.28 | ¥2,372.29 | ↑ |
| New pharmaceuticals, etc. (domestic) sales | ¥87,113 million | ¥84,118 million (back-calculated from 3.5% year-on-year increase) | ↑ |
| New pharmaceuticals (overseas) sales | ¥693 million | ¥8,860 million (back-calculated from 92.2% year-on-year decrease) | ↓ |
| Generic drug sales | ¥38,451 million | ¥37,109 million (back-calculated from 3.7% year-on-year increase) | ↑ |
| Annual dividend per share | ¥57.00 | ¥57.00 | — |
Business Details
Kyorin Pharmaceutical Co., Ltd., Kyorin Rimedio Co., Ltd., and Kyorin Pharmaceutical Group Factory Co., Ltd. operate as an integrated group, manufacturing and selling new pharmaceuticals (domestic and overseas) and generic drugs. Major customers are the four leading pharmaceutical wholesalers (Alfresa Holdings, Medipal Holdings, Suzuken, and Toho Yakuhin), which together account for approximately 59% of net sales. Under the long-term vision "Vision 110," the company has positioned maximization of the new-drug ratio and expansion of the in-licensed development pipeline as pillars of its growth strategy, and from FY2026 (ending March 2026) has launched the second phase, "Vision 110 -Stage2-."
Recent Overview
Operating profit fell 71.6% due to the reversal of a one-time contract payment and increased R&D expenses; a basic agreement was signed to transfer the generic drug business
For FY2026 (ending March 2026), net sales were ¥126,257 million (down 2.9% year on year), mainly due to the reversal of the one-time contract payment (recorded under new pharmaceuticals overseas sales) received in the prior fiscal year in connection with the out-licensing of the proprietary compound "KRP-M223" to Novartis. In addition, R&D expenses increased by ¥1,545 million due to upfront payments recorded for the in-licensing of KRP-A225 and KRP-126, resulting in a sharp decline in operating profit to ¥3,567 million (down 71.6% year on year). On the other hand, domestic new drugs (Beova, Dezalex, etc.) grew, with new pharmaceuticals, etc. (domestic) up 3.5% year on year. As a significant subsequent event, on April 24, 2026, the company entered into a basic agreement to transfer the generic drug business (excluding the authorized generic business) to "Iyakuhin Kyoso Kiko Co., Ltd. (tentative name)," led by Daito Pharmaceutical Co., Ltd. (transfer execution date scheduled for April 1, 2027). For the next fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥121,800 million (down 3.5% year on year) and operating profit of ¥2,000 million (down 43.9% year on year).
Key Products
Growth Drivers
- Maximization of the new-drug ratio through continued sales expansion of mainstay new drugs (Beova, Mucodyne, Lasvic, etc.)
- Under the medium-term management plan "Vision 110 -Stage2- (FY2026–FY2029)," the acquisition of in-licensed products is being pursued as the top priority (7 deals achieved in Stage1, exceeding the target of 6)
- Steady progress in the development pipeline (start of Phase 3 trial for KRP-114VP, preparation for Phase 2 of KRP-S124, confirmatory trials for KRP-DT123 and KRP-DC125, etc.)
- Concentration of management resources on the new pharmaceuticals business through the transfer of the generic drug business to "Iyakuhin Kyoso Kiko Co., Ltd. (tentative name)"
- Capturing generic drug demand driven by the impact of the selective treatment fee system for long-listed products (generic drug sales up 3.7% year on year this fiscal year)
- Profit improvement effect from the expected reduction in R&D expenses next fiscal year (down ¥2,800 million year on year)
Risks
- Downward pressure on sales and profit from continued drug price revisions (the April 2026 revision is expected to have an approximately 4% impact on Kyorin Pharmaceutical Co., Ltd.)
- Decline in sales of the mainstay product Dezalex due to anticipated generic drug entry in the next fiscal year
- Risk of R&D pipeline setbacks (the interstitial lung disease treatment KRP-R120 failed to meet its primary endpoint in an international joint Phase 3 trial; future direction is under discussion)
- Risks related to negotiation and execution of the generic drug business transfer (definitive agreement expected by the end of September 2026; transfer execution scheduled for April 1, 2027)
- Uncertainty regarding one-time revenues such as upfront licensing payments (R&D expenses are expected to decrease by ¥2,800 million next fiscal year due to the reversal of upfront payments, but the timing and scale of new in-licensing deals remain uncertain)
- Risk of deviation from the assumed exchange rates underlying the consolidated earnings forecast for the next fiscal year (US$1 = ¥152, €1 = ¥179)
- Risk of cash flow pressure from maintaining high inventory levels (at fiscal year-end: merchandise and finished goods ¥23,873 million, work in process ¥14,754 million, raw materials and supplies ¥29,161 million)
Last updated: June 18, 2026