Kubota Pharmaceutical Holdings Co., Ltd.
4596・Growth Market・Pharmaceuticals
Pharmaceuticals & Medical Devices Business (Kubota Pharmaceutical Holdings Co., Ltd. single segment)
A research and development-focused company specializing in the ophthalmology field, driving global expansion centered on medical devices and low-molecular-weight compounds.
| Period | Current | Previous | Change |
|---|---|---|---|
| Business revenue (Q1 cumulative) | ¥5 million | ¥7 million (same quarter of previous fiscal year) | ↓ |
| Operating loss (Q1 cumulative) | -¥313 million | -¥259 million (same quarter of previous fiscal year) | ↓ |
| Research and development expenses (Q1 cumulative) | ¥139 million | ¥71 million (same quarter of previous fiscal year) | ↑ |
| Selling, general and administrative expenses (Q1 cumulative) | ¥166 million | ¥168 million (same quarter of previous fiscal year) | — |
| Cash and cash equivalents (end of period) | ¥1,788 million | ¥1,919 million (end of FY2025 (ending December 2025)) | ↓ |
| Total assets | ¥1,864 million | ¥1,979 million (end of FY2025 (ending December 2025)) | ↓ |
| Equity attributable to owners of the parent | ¥1,676 million | ¥1,814 million (end of FY2025 (ending December 2025)) | ↓ |
| Basic loss per share for the quarter | -¥2.58 | -¥4.49 (same quarter of previous fiscal year) | ↑ |
| Number of shares issued | 138,504,288 shares | 115,404,288 shares (end of FY2025 (ending December 2025)) | ↑ |
| Cash flow from operating activities (Q1 cumulative) | -¥282 million | -¥262 million (same quarter of previous fiscal year) | ↓ |
| Cash flow from financing activities (Q1 cumulative) | ¥158 million | ¥70 million (same quarter of previous fiscal year) | ↑ |
Business Details
The Group is an ophthalmic medical solutions company specializing in the ophthalmology field, conducting research and development and sales with the wearable myopia device "Kubota Glass," the home telemedicine monitoring device "eyeMO," and the low-molecular-weight compound "Emixustat Hydrochloride" as its main pipeline. Business revenue is mainly derived from sales of Kubota Glass. Disclosed as a single segment.
Recent Overview
Research and development expenses increased 96.1% year-on-year, widening the operating loss. A license agreement was signed for Emixustat Hydrochloride's Compassionate Use Program in France.
Business revenue for the first quarter of FY2026 (ending March 2026) (January to March 2026) was ¥5 million (down 35.2% year-on-year). Research and development expenses expanded to ¥139 million (up 96.1% year-on-year) due to increased development costs for Emixustat Hydrochloride and Kubota Glass, and the operating loss worsened to ¥313 million (compared to ¥259 million in the same quarter of the previous fiscal year). Meanwhile, the company secured ¥162 million in proceeds from the issuance of common stock through the exercise of stock acquisition rights. As a subsequent event, on April 30, 2026, the company implemented a reduction of capital without consideration of ¥567,576 thousand to cover accumulated losses, and issued 1,740,000 shares of restricted stock (at ¥96 per share) to one representative director. While there exists a material uncertainty that casts significant doubt on the company's ability to continue as a going concern, the company has determined that funding for the immediate term has been secured.
Key Products
Growth Drivers
- Transition to the execution phase of market development for Kubota Glass in the Chinese market through a four-distributor system, and the launch of a new clinical trial in Shanghai
- Early monetization through the utilization of a Compassionate Use Program in France following the license agreement with Laboratoires KÔL for Emixustat Hydrochloride
- Establishment of a recurring revenue base through the launch of the subscription-based sales program "Kubota Glass My Vision Program" for Kubota Glass in Japan
- Fundraising through the exercise of stock acquisition rights (¥162 million in Q1 of FY2026 (ending December 2026)) and securing of liquid assets on hand
- Preparation for global expansion of Kubota Glass into Taiwan, the UK, and South Asia (ongoing discussions for launch in Taiwan, exhibition at UK trade show)
- Strengthening of financial soundness through the reduction of capital without consideration and coverage of accumulated losses effective April 30, 2026, securing flexibility in future capital policy
Risks
- Business revenue remains extremely low at ¥5 million, and continued operating losses and negative operating cash flow have created a situation raising material doubt about the company's ability to continue as a going concern
- Kubota Glass is highly novel, making objective demand forecasting difficult, and the company continues to be unable to disclose full-year earnings forecasts for FY2026 (ending December 2026)
- Research and development expenses have expanded significantly, up 96.1% year-on-year, and may continue to fluctuate substantially going forward
- The Phase 3 clinical trial for Emixustat Hydrochloride did not meet its primary endpoint, and significant uncertainty remains regarding retesting and obtaining approval
- Reliance on fundraising through stock acquisition rights (with exercise price adjustment provisions) continues to pose an ongoing risk of shareholder dilution (number of shares issued increased from 115,404,288 shares at the end of FY2025 (ending December 2025) to 138,504,288 shares at the end of Q1 FY2026)
- The licensing-out or business alliance partner for eyeMO remains undetermined at this time, leaving the outlook for monetization unclear
- Cash and cash equivalents have continued to decline, from ¥4,049 million at the end of FY2022 (ending December 2022) to ¥1,788 million at the end of Q1 FY2026, increasing the risk of depletion of funds
Last updated: March 27, 2026