Conference on FY2023
(April 1, 2023 to March 31, 2024)
Financial Results
Hiroshi Nomura, President and CEO Sumitomo Pharma Co., Ltd.
May 14, 2024
Disclaimer Regarding Forward-looking Statements
This material contains forecasts, projections, goals, plans, and other forward-looking statements regarding the Group's financial results and other data. Such forward-looking statements are based on the Company's assumptions, estimates, outlook, and other judgments made in light of information available at the time of disclosure of such statements and involve both known and unknown risks and uncertainties.
Accordingly, forecasts, plans, goals, and other statements may not be realized as described, and actual financial results, success/failure or progress of development, and other projections may differ materially from those presented herein.
Information concerning pharmaceuticals and medical devices (including those under development) contained herein is not intended as advertising or as medical advice.
© Sumitomo Pharma Co., Ltd. All Rights Reserved. | 1 |
Financial Results for FY2023
© Sumitomo Pharma Co., Ltd. All Rights Reserved. | 2 |
Financial Results for FY2023
Financial Results for FY2023 (Core Basis)
Billions of yen | |||||||||||
FY2022 | FY2023 | Change | FY2023 | ||||||||
Jan. 31 | |||||||||||
Results | Results | Value | FX impact | % | |||||||
forecasts | |||||||||||
Revenue | 555.5 | 314.6 | (241.0) | 11.1 | (43.4) | 317.0 | |||||
Cost of sales | 176.7 | 126.6 | (50.1) | (12.3) | (28.4) | 125.0 | |||||
Gross profit | 378.8 | 188.0 | (190.9) | 23.4 | (50.4) | 192.0 | |||||
SG&A expenses | 305.6 | 236.4 | (69.2) | 11.3 | (22.6) | 240.0 | |||||
R&D expenses | 106.1 | 90.9 | (15.2) | 3.4 | (14.3) | 92.0 | |||||
Other operating income/expenses | 49.2 | 6.4 | (42.8) | - | 6.0 | ||||||
Core operating profit | 16.4 | (133.0) | (149.3) | 8.3 | - | (134.0) | |||||
Non-recurring items | (93.3) | (221.9) | (128.5) | (22.0) | |||||||
(negative number indicates net loss) | |||||||||||
Operating profit | (77.0) | (354.9) | (277.9) | - | (156.0) | ||||||
Finance income/costs | 29.1 | 31.7 | 2.7 | 18.0 | |||||||
Profit before taxes | (47.9) | (323.1) | (275.2) | - | (138.0) | ||||||
Income tax expenses | 48.8 | (8.2) | (57.0) | 3.0 | |||||||
Net profit | (96.7) | (314.9) | (218.2) | - | (141.0) | ||||||
Net profit attributable to owners | (74.5) | (315.0) | (240.5) | - | (141.0) | ||||||
of the parent | |||||||||||
Average rates: | Period end rates: | ||||||||||
FY2022 Results : 1US$ = ¥135.51, 1RMB = ¥19.75 | As of the end of March 2023 : 1US$ = ¥133.54, 1RMB = ¥19.42 | ||||||||||
FY2023 Results : 1US$ = ¥144.59, 1RMB = ¥20.14 | As of the end of March 2024 : 1US$ = ¥151.33, 1RMB = ¥20.84 | ||||||||||
FY2023 forecasts : 1US$ = ¥145.00, 1RMB = ¥20.00 | |||||||||||
- Revenue decreased significantly due to LATUDA®'s loss of exclusivity in the U.S.
- Other operating income/expenses:
- FY2023: Share transfer of Sumitomo Pharma Animal Health Co., Ltd.
- FY2022: Share transfer of Sumitomo Pharma Food & Chemical Co., Ltd.; Certain product transfers and Priority Review Voucher sale in the U.S.
- Non-recurringitems:
- FY2023: Impairment loss on intangible assets and goodwill; Business structure improvement expenses in North America
- FY2022: Impairment loss on intangible assets; Business structure improvement expenses in North America
© Sumitomo Pharma Co., Ltd. All Rights Reserved. | 3 |
Financial Results for FY2023
Revenue of Major Products in North America
FY2022 | FY2023 | FY2022 | FY2023 | Change | |||
Change | |||||||
Results | Results | Results | Results | Value | FX | % | |
impact | |||||||
North America | Million $ | Billions of yen | ||||||
ORGOVYX® | 182 | 292 | 110 | 24.7 | 42.2 | 17.5 | 2.7 | 70.8 |
MYFEMBREE® | 33 | 64 | 30 | 4.5 | 9.2 | 4.7 | 0.6 | 104.7 |
GEMTESA® | 182 | 255 | 73 | 24.7 | 36.8 | 12.1 | 2.3 | 49.2 |
APTIOM® | 249 | 235 | (14) | 33.7 | 34.0 | 0.3 | 2.1 | 0.7 |
RETHYMIC® | 33 | 44 | 11 | 4.4 | 6.3 | 1.9 | 0.4 | 42.3 |
LATUDA® | 1,465 | 47 | (1,418) | 198.5 | 6.7 | (191.8) | 0.4 | (96.6) |
Others | 76 | 15 | (61) | 10.3 | 2.1 | (8.1) | 0.1 | (79.2) |
Export products/ | 204 | 150 | (54) | 27.7 | 21.7 | (6.0) | 1.4 | (21.7) |
One-time revenue, etc. * | ||||||||
Total | 2,424 | 1,100 | (1,324) | 328.5 | 159.0 | (169.4) | 10.0 | (51.6) |
- Revenue decreased significantly due to LATUDA®'s loss of exclusivity in the U.S. despite the growth of three key products and
RETHYMIC® - Decrease in Others was due to the transfer of some products in FY2022
- Export products/One- time revenue, etc. in FY2022 included $50M for the licensing agreement for ORGOVYX® in the EU (See the breakdown below the table)
* Major items included in Export products/One-time revenue, etc.
Deferred revenue from the collaboration with Pfizer of $138M | Deferred revenue from the collaboration with Pfizer of $117M | ||
FY2022 | FY2023 | ||
Revenue from the license agreement for ORGOVYX® in EU of $50M | Milestone revenue from the approval of MYFEMBREE® for | ||
endometriosis in EU of $9M | |||
Average rates:
FY2022 Results : 1US$ = ¥135.51
FY2023 Results : 1US$ = ¥144.59
© Sumitomo Pharma Co., Ltd. All Rights Reserved. | 4 |
Financial Results for FY2023
Revenue of Major Products in Japan & Asia Billions of yen
FY2022 | FY2023 | Change | Japan | ||||||
Results | Results | Value | % | Revenue decreased due to the termination of | |||||
the sales collaboration for Trulicity® and the | |||||||||
Japan | |||||||||
transfer of all shares of two domestic | |||||||||
Equa®/EquMet® | 33.6 | 30.6 | (2.9) | (8.7) | consolidated subsidiaries | ||||
TRERIEF® | 16.7 | 15.5 | (1.2) | (7.0) | Sales of LATUDA®, TWYMEEG®, and | ||||
LATUDA® | 9.6 | 11.7 | 2.2 | 22.5 | |||||
LONASEN® Tape continue to grow | |||||||||
METGLUCO® | 7.7 | 7.3 | (0.4) | (5.3) | |||||
TWYMEEG® | 2.2 | 4.6 | 2.3 | 105.6 | Export products/One-time revenue, etc. in | ||||
LONASEN® Tape | 2.9 | 3.8 | 0.9 | 29.9 | FY2022 includes one-time revenue ¥6.1B under | ||||
AG products | 9.2 | 9.7 | 0.5 | 5.8 | the license agreement for DSP-0187 | ||||
Trulicity® * | 24.8 | - | (24.8) | - | Total impact of NHI drug price revision (¥4.2B) | ||||
Others | 19.4 | 22.1 | 2.8 | 14.3 | |||||
Export products/ | 12.8 | 8.0 | (4.8) | (37.7) | |||||
One-time revenue, etc. | |||||||||
Non-pharmaceutical operations | 44.8 | 1.3 | (43.5) | (97.1) | Asia | ||||
Total | 183.6 | 114.7 | (69.0) | (37.6) | |||||
MEROPEN® (China) revenue decreased due to | |||||||||
Asia | |||||||||
Volume-Based Procurement application | |||||||||
MEROPEN® (China) | 28.5 | 21.3 | (7.3) | (25.5) | |||||
Others | 14.9 | 19.6 | 4.7 | 31.4 | |||||
Total | 43.5 | 40.9 | (2.6) | (6.0) | |||||
Note: | Sales of each product in Japan are shown by invoice price (* Trulicity® is shown by NHI drug price) | © Sumitomo Pharma Co., Ltd. All Rights Reserved. 5 |
Financial Results for FY2023
Segment Information (Core Basis) | Billions of yen | ||||||
Japan | North | Asia | Total | ||||
America | |||||||
Revenue | 114.7 | 159.0 | 40.9 | 314.6 | |||
FY2023 Results | Cost of sales | 54.2 | 62.0 | 10.4 | 126.6 | ||
Gross profit | 60.5 | 97.0 | 30.5 | 188.0 | |||
Core segment profit | 13.4 | (80.2) | 18.4 | (48.5) | |||
SG&A expenses | 47.1 | 177.2 | 12.1 | 236.4 | |||
R&D expenses | 90.9 | ||||||
Core operating profit | (133.0) | ||||||
Revenue | 183.6 | 328.5 | 43.5 | 555.5 | |||
Cost of sales | 104.9 | 62.4 | 9.4 | 176.7 | |||
Gross profit | 78.7 | 266.0 | 34.1 | 378.8 | |||
FY2022 Results | Core segment profit | 19.5 | 32.2 | 21.4 | 73.2 | ||
SG&A expenses | 59.2 | 233.8 | 12.6 | 305.6 | |||
R&D expenses | 106.1 | ||||||
Core operating profit | 16.4 | ||||||
Change | Revenue | (69.0) | (169.4) | (2.6) | (241.0) | ||
SG&A expenses | (12.1) | (56.5) | (0.5) | (69.2) | |||
Core segment profit | (6.2) | (112.5) | (3.0) | (121.7) | |||
R&D expenses | (15.2) | ||||||
Core operating profit | (149.3) |
Japan
- Despite a decrease in selling, general and administrative expenses, a decline in revenue resulted in gross profit and core segment profit decrease
North America
- A decline in revenue resulted in significant gross profit and core segment profit decrease, despite a reduction in selling, general and administrative expenses
Asia
- A decline in revenue resulted in a decrease in gross profit and core segment profit
© Sumitomo Pharma Co., Ltd. All Rights Reserved. | 6 |
Financial Forecasts for FY2024
© Sumitomo Pharma Co., Ltd. All Rights Reserved. | 7 |
Financial Forecasts for FY2024
Structural Reform in Sumitomo Pharma America, Inc. (SMPA)
Established lean operational structure through rationalization of SMPA, resulting in approximately 1,200 employees
Before Integration | After Integration | After Rationalization | |
(As of Mar. 31, 2023) | (As of Dec. 31, 2023) | (As of Mar. 31, 2024) | |
SMPA headcount* | 2,216 | 1,757 | 1,200** |
R&D/Non R&D, (Unit: people) | 805/1,411 | 451/1,306 | 172/1,028 |
Financial Results | Seven U.S. subsidiaries | Financial Results | Rationalization of | Financial Forecasts | |||||
North America Segment | for FY2022 | were integrated as part | for FY2023 | for FY2024 | |||||
(Million $) | of efforts to achieve | (Million $) | SMPA due to | (Million $) | |||||
sustained growth after | underperformance of | ||||||||
the loss of exclusivity | revenue from the three | ||||||||
2,424 | 1,100 | 1,370 | |||||||
Revenue | for LATUDA® in the U.S. | key products | |||||||
(July 2023) | (March 2024) | ||||||||
Cost of sales | 461 | 429 | 526 | ||||||
Gross Profit | 1,963 | 671 | 844 | ||||||
SG&A expenses | 1,725 | 1,226 | 758 | ||||||
Core segment profit | 238 | (555) | 86 | ||||||
Include amortization expenses of patent rights and cost allocation, etc. | |||||||||
Average rates: FY2022 Results:1US$ = ¥135.51, FY2023 Results: 1US$ = ¥144.59, FY2024 forecasts:1US$ = ¥145.00 | 8 | ||||||||
* Include Sumitomo Pharma Switzerland GmbH, ** Headcount reflects employees with known termination dates throughout FY2024 | © Sumitomo Pharma Co., Ltd. All Rights Reserved. | ||||||||
Financial Forecasts for FY2024
Review of Development Pipeline and Organizational Restructuring
Implementing a well balanced investment allocation in each area and establishing a new global operating model
- Focus on clinical development of two oncology compounds (TP-3654,DSP-5336) to accelerate value maximization
- Promote clinical development of regenerative medicine/cell therapy programs including CT1-DAP001/DSP-1083 for Parkinson's disease
- In the psychiatry & neurology area, revised the alliance with Otsuka Pharmaceutical and focus on identifying value inflection point of early stage pipelines
- Transform into a lean R&D organization by global integration of Japan and the U.S., through workforce optimization
As of Jan. 31, 2024 | As of May 14, 2024 | ||||||||||||||
Others | Psychiatry & | Others | |||||||||||||
Others | 1 | 2 | Neurology | 1 | |||||||||||
2 | |||||||||||||||
Clinical | Infection | 6 | |||||||||||||
Psychiatry & | |||||||||||||||
disease | Total* | 10 | Total* | ||||||||||||
Development | 5 | Small | 4 | 17 | Neurology | ||||||||||
Small | 22 | ||||||||||||||
Pipelines* | molecules | ||||||||||||||
molecules | Oncology | 4 | |||||||||||||
Oncology | 4 | Regenerative medicine/ | |||||||||||||
cell therapy | |||||||||||||||
*. Number of development assets in clinical study/clinical research phase. Psychiatry & Neurology area includes ophthalmology | © Sumitomo Pharma Co., Ltd. All Rights Reserved. 9 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Sumitomo Pharma Co. Ltd. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 06:37:30 UTC.