Feb. 12, 2021Finances
Sumitomo Dainippon Pharma Announces Revisions to Its Financial Forecasts
Sumitomo Dainippon Pharma Co., Ltd. (Head Office: Osaka, Japan; Representative Director, President and CEO: Hiroshi Nomura; Securities Code: 4506, First Section of TSE) announced today that it has revised the consolidated financial forecasts that were announced on October 28, 2020 for the year ending March 31, 2021 (fiscal 2020), as summarized below, taking the Group's recent business performance trends, the outcome of napabucasin Phase 3 study for colorectal cancer announced on February 9 and other factors into consideration.
1.Revisions to the Forecasts of Consolidated Financial Results for the Year ending March 31, 2021 (April 1, 2020 to March 31, 2021)
(Millions of yen)
|Revenue||Core operating profit||Operating profit||Net|
attributable to owners of the parent
|Basic earnings per share|
|Previous Forecasts (A)||506,000||47,000||58,000||21,000||42,000||¥105.71|
|Revised Forecasts (B)||515,000||63,000||49,000||9,000||27,000||¥67.96|
|Variance in amount
|Variance in percent (%)||1.8||34.0||(15.5)||(57.1)||(35.7)||-|
|[Reference] Previous year
(Year ended March 31, 2020)
Note: Core operating profit is calculated by deducting from operating profit any gains and losses resulting from nonrecurring factors, including changes in fair value of contingent consideration, impairment losses, and business structure improvement expenses.
2. Reasons for the revisions
Revenue is now expected to be 515.0 billion yen, up by 9.0 billion yen from the previous forecast, as sales of LATUDA® (atypical antipsychotic) remain strong in the North America segment, despite some revenue erosion caused by the strong yen.
Core operating profit is now expected to be 63.0 billion yen, up by 16.0 billion yen from the previous forecasts. This is a result of an expected increase in gross profit due to revenue growth, and an expected decrease in selling, general and administrative expenses and R&D expenses, primarily owing to the yen's appreciation.
Operating profit has been revised to 49.0 billion yen, down by 9.0 billion yen from the previous forecasts. This is mainly because we expect to post a reversal of expenses under changes in the fair value of contingent consideration and impairment losses, following a failure to meet the primary endpoint in the analysis results of the Phase 3 study of napabucasin for colorectal cancer. The revision also reflects the re-evaluation of business viability for alvocidib and TP-0903, which are under development for acute myeloid leukemia (AML) and others, and solid tumors, respectively.
The forecast for net profit has been revised to 9.0 billion yen, down by 12.0 billion yen from the previous forecasts, as anticipated forex losses under finance costs. Net profit attributable to owners of the parent has been revised to 27.0 billion yen, down by 15.0 billion yen from the previous forecasts due to decrease in losses attributable to non-controlling interests.
In the revisions, we have changed our assumption of the yen-dollar exchange rate (yearly average) for the year ending March 31, 2021, from 108.0 yen to 106.0 yen.
Please refer to the attached reference material for details of the revision of the forecasts.
Disclaimer Regarding Forward-looking Statements
The statements made in this press release contain forward-looking statements based on management's assumptions and beliefs in light of information available as of the day of this release, which involve both known and unknown risks and uncertainties. Actual results of those matters covered in the forward-looking statements including financial forecast may differ materially from those contained in this release, due to a number of factors.