Chugai Pharmaceutical Co., Ltd.

For the first half of FY2026, revenue was JPY 663.3 billion, up JPY 84.8 billion or 14.7% year on year. Core operating profit was JPY 329.1 billion, up JPY 57.1 billion or 21% year on year, operating profit margin was 49.6%, 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 JPY 14.6 billion or 6.5%; overseas sales were JPY 328.6 billion, up JPY 40.5 billion or 14.1%; and other revenue was JPY 96.8 billion, up JPY 29.8 billion. Cost of sales rose to JPY 195.9 billion, with the ratio up 0.3 points to 34.6%; R&D was JPY 90.2 billion; SG&A was JPY 49.0 billion. For balance sheet items, total assets were JPY 2,449.9 billion, equity ratio was 82.8%, and net cash was JPY 962.6 billion. Management reiterated confidence in meeting the full-year forecast, said first-half performance was slightly better than expected, and maintained an expected annual dividend of JPY 132 per share.

Okuda said the first half showed steady progress across both financial performance and business development, driven by domestic and overseas product sales plus a meaningful increase in other revenue. He emphasized Chugai’s push to become a company with a record number of filings, and highlighted NXT007 as a next-generation growth driver with two Phase III studies now underway. His tone was constructive and confident, with repeated comments that the company was on track to achieve its full-year forecast.

Taniguchi said the first half showed broad-based growth: product sales rose to JPY 566.5 billion, overseas sales climbed to JPY 328.6 billion, and other revenue increased to JPY 96.8 billion due to one-time income and royalties. He noted margin support from scale, while cost of sales rose to JPY 195.9 billion and the ratio moved up to 34.6% mainly because of product mix; R&D was JPY 90.2 billion and SG&A was JPY 49.0 billion. On the balance sheet, he pointed to JPY 2,449.9 billion of total assets, 82.8% equity ratio, and net cash of JPY 962.6 billion, and linked capital policy to maintaining the dividend and considering active investment and possible strategic acquisitions.

Analysts focused on why royalty revenue looked flat quarter to quarter despite stronger NEMLUVIO sales and the start of Foundayo royalties; management said partner inventory and shipment timing do not align with local sales and declined to disclose the breakdown or calculation. Questions also centered on capital allocation, including share buybacks and the new strategic investment department; management said buybacks are technically possible but no specific decision was made, and explained the new department as a way to strengthen open innovation, M&A, and use of accumulated cash more effectively. On R&D, analysts asked about NXT007 design, AQUA07’s combination strategy, DONQ52 timing, and PiaSky/NMF filings; management reaffirmed its strategic logic but avoided disclosing superiority, pricing, or licensing-out specifics.