Otsuka
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Otsuka (4578) investor relations material

Otsuka Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary13 Feb, 2026

Executive summary

  • FY2025 revenue rose 6.0% year-over-year to ¥2,468.9 billion, with business profit up 3.6% to ¥446.1 billion, both reaching record highs, driven by global products, royalty income, and the nutraceutical business.

  • Pharmaceutical revenue increased 7.1% to ¥1,744.2 billion, led by strong sales of REXULTI, ABILIFY MAINTENA, and higher royalty income, despite generic JYNARQUE impact.

  • Nutraceutical revenue grew 3.7% to ¥577.7 billion, with all categories contributing, especially "For Women's Health," "For Healthier Life," and POCARI SWEAT.

  • Operating profit surged 48.2% to ¥479.4 billion, aided by a gain from the sale of MicroPort shares and reduced impairment losses.

  • Major acquisitions included Araris Biotech AG and Otsuka ICU Medical LLC, expanding R&D and IV solution capabilities.

Financial highlights

  • Operating profit surged 48.2% year-over-year to ¥479.4 billion, while net profit rose 5.8% to ¥363.2 billion; EPS was ¥685.06.

  • Business profit margin was 18.1% of revenue; ratio of operating profit to revenue was 19.4%.

  • R&D expenses increased 12.3% to ¥352.8 billion, reflecting investment in new drug pipelines.

  • Cash and cash equivalents at year-end were ¥534.6 billion, up ¥108.5 billion.

  • Total assets increased to ¥4,197.6 billion; equity attributable to owners rose to ¥3,033.4 billion.

Outlook and guidance

  • FY2026 revenue is forecast at ¥2,520.0 billion (+2.1% YoY), but business profit is expected to decline 20.4% to ¥355.0 billion due to higher SG&A, R&D costs, and loss of exclusivity (LOE) for major products.

  • Net profit is projected to fall 27.0% to ¥265.0 billion, with ROE above 8.5%.

  • R&D expenses expected to rise 7.1% to ¥378.0 billion, focusing on next-generation products.

  • Dividend per share forecast for FY2026: ¥140.00.

  • Growth in "Global 10 plus 2" products and NC business expected to partially offset LOE impacts.

What drives the significant FY2026 profit decline?
Assess the impact of recent R&D discontinuations.
Mitigate JINARC/JYNARQUE generic impact.
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Frequently asked questions

Otsuka Holdings Co., Ltd. is a diversified healthcare company primarily engaged in the research, development, manufacture, and sale of pharmaceutical and nutraceutical products. The company operates through its subsidiaries to deliver a wide array of products including pharmaceuticals aimed at treating diseases in the central nervous system, cancer, cardiovascular, gastrointestinal, and respiratory fields, among others. Otsuka also offers functional beverages, foods, and medical devices. The company is headquartered in Minato-ku, Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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