Print（PDF/172KB） Apr. 28, 2025 Finances

Sumitomo Pharma Announces Revisions to Its Financial Forecasts and Recording of Gains from Transfer of Equity Interests

Sumitomo Pharma Co., Ltd. (Head Office: Osaka, Japan; Representative Director, President and CEO: Toru Kimura; Securities Code: 4506, Prime Market of TSE) announced today that the Company has revised its consolidated financial forecasts that were announced on January 31, 2025, for the year ended March 31, 2025, as summarized below, based on recent trends in the Group’s business performance.

The Company also announced the recording of gains from the company split of the regenerative medicine and cell therapy business and the transfer of equity interest in a subsidiary in its consolidated financial results for the year ended March 31, 2025.

1. Revisions to Financial Forecasts

(1) Revisions to the Consolidated Financial Forecasts for the Year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

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Note:

Core operating profit is an original indicator that shows the Company’s performance, calculated by deducting certain items from operating profit, such as impairment losses, business structure improvement expenses, and changes in fair value of contingent consideration.

(2)Reasons for the Revisions

Revenue is now expected to be 398.8 billion JPY, up by 17.8 billion JPY from the previous forecast, as sales of ORGOVYX® (therapeutic agent for advanced prostate cancer) and other products were higher than expected in the North America segment.

Core operating profit has been revised up by 13.2 billion JPY from the previous forecast to 43.2 billion JPY. This is because selling, general and administrative expenses, as well as research and development expenses, are expected to be nearly in line with expectations, while gross profit is anticipated to increase due to higher revenue.

Operating profit has been revised up by 7.8 billion JPY from the previous forecast to 28.8 billion JPY, due to the increase in core operating profit despite profit-reducing factors such as the recording of impairment losses on intangible assets. Net profit attributable to owners of the parent has been revised up by 7.6 billion JPY from the previous forecast to 23.6 billion JPY.

2. Recording of Gains from Transfer of Equity Interests

As per the “Notice Regarding Company Split (Simplified Absorption-type Company Split) of the Regenerative Medicine and Cell Therapy Business and Transfer of Subsidiary Shares,” disclosed on December 17, 2024, the Company decided to (i) split off its regenerative medicine and cell therapy business and transfer it to RACTHERA Co., Ltd. and S-RACMO Co., Ltd. (absorption-type company split) and (ii) after the absorption-type company split becomes effective, transfer 66.6% of the shares in RACTHERA to Sumitomo Chemical Co., Ltd. The series of procedures was completed on February 1, 2025. With this, the Company expects to record gains of 11.9 billion JPY from the transfer of equity interests in subsidiaries and associates in its consolidated financial results for the year ended March 31, 2025. These gains were factored in the consolidated financial forecasts announced on January 31, 2025 prior to the revisions at this time.

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.