Chugai Pharmaceutical Co., Ltd.

For the first half of FY 2026, revenue was JPY 663.3 billion, up JPY 84.8 billion or 14.7% year over year. Core operating profit was JPY 329.1 billion, up JPY 57.1 billion or 21.0%, operating profit was JPY 329.1 billion, and net income after tax was JPY 238.4 billion, up JPY 44.9 billion or 23.2%. Product sales were JPY 566.5 billion, up 10.8%; domestic sales were JPY 237.9 billion, up 6.5%; overseas sales were JPY 328.6 billion, up 14.1%; and other revenue was JPY 96.8 billion, up sharply on one-time and royalty income. Cost of sales was JPY 195.9 billion, up 11.8%, with the ratio at 34.6% (+0.3 pts); R&D was JPY 90.2 billion; SG&A was JPY 49.0 billion; and the operating margin improved to 49.6% (+2.6 pts). Net cash was JPY 962.6 billion, and the equity ratio was 82.8%. Management reiterated that first-half progress was strong enough to support the full-year forecast and said 2026 now appears to have 16 planned filings, up from 15 previously, after accelerating divarasib into this year.

CEO Osamu Okuda framed the quarter as steady across both financial and pipeline execution. He emphasized that Chugai is making progress on its TOP I 2030 strategy through open innovation, in-house science, and external partnerships, while also building capabilities to make more active use of accumulated cash. His tone was confident but measured: the company is investing for sustainable growth, expanding its portfolio options, and maintaining a stable dividend.

CFO Iwaaki Taniguchi highlighted first-half revenue of JPY 663.3 billion and core operating profit of JPY 329.1 billion, both up strongly year over year, with operating margin at 49.6%. He broke out the drivers: product sales of JPY 566.5 billion, other revenue of JPY 96.8 billion, cost of sales at JPY 195.9 billion, R&D at JPY 90.2 billion, and SG&A at JPY 49.0 billion. On the balance sheet, he said total assets were JPY 2,449.9 billion, equity ratio was 82.8%, and net cash was JPY 962.6 billion, down JPY 17.1 billion from prior periods mainly because of taxes and a special dividend. He also said the company kept the ordinary payout ratio at 45% and is proposing a JPY 132 annual dividend.

Analysts focused on why royalty revenue from Roche-linked products looked flat quarter to quarter, and management said partner shipments and local sales do not move in lockstep because Galderma and Roche manage inventory and ordering independently. Questions also centered on the new strategic investment department, where management said it was created to take a more proactive role in open innovation, M&A, and technology acquisition, while putting Chugai’s large cash balance to work. On the pipeline, analysts pressed on NXT007 positioning, AQUA07’s combination strategy and toxicity, DONQ52’s slow development pace, and the unexpectedly strong domestic Vabysmo and Elevidys progress; management mostly kept to strategic framing and said several programs remain on plan or ahead of plan.