Chugai Pharmaceutical (4519): FY2025 Results Summary — Record Revenue, Operating Profit and Net Income

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Chugai Pharmaceutical’s fiscal year runs from January to December; the company’s materials label the period covered here as “FY2025.12” (the twelve months ended December 2025), which this article refers to as FY2025 in line with site convention.

Chugai Pharmaceutical reported record-high revenue, operating profit and net income for FY2025, with operating profit surpassing 600 billion JPY for the first time and marking the 9th consecutive period of growth. Revenue increased 7.5% year on year to 1,257.9 billion JPY, operating profit rose 12.1% to 623.2 billion JPY (operating margin of 49.5%), and net income grew 13.6% to 451.0 billion JPY. All three metrics exceeded the company’s initial forecasts for the year (revenue 105.7%, operating profit 109.3%, net income 110.0% of forecast).

Consolidated Results (Full-Year Actual, Core basis)

On a Core basis (Chugai’s internal performance indicator after adjusting non-recurring items from IFRS results), domestic sales grew on new and mainstay products despite the impact of NHI drug price revisions and generic penetration, while overseas sales rose on higher Hemlibra and Actemra sales. The cost-to-sales ratio improved on foreign exchange and product mix effects.

Item	FY2025 Actual	FY2024 Actual	Change (YoY)
Revenue	1,257.9	1,170.6	+87.3 / +7.5%
Domestic sales	472.4	461.1	+11.3 / +2.5%
Overseas sales	605.4	536.8	+68.6 / +12.8%
Other revenue	180.1	172.7	+7.4 / +4.3%
Cost of sales	-351.5	-338.1	-13.4 / +4.0%
Cost to sales ratio	32.6%	33.9%	-1.3%p
Research and development	-180.1	-176.9	-3.2 / +1.8%
Selling, general and administration	-103.2	-102.2	-1.0 / +1.0%
Operating profit	623.2	556.1	+67.1 / +12.1%
Operating margin	49.5%	47.5%	+2.0%p
Net income	451.0	397.1	+53.9 / +13.6%
EPS (JPY)	274.02	241.31	+32.71 / +13.6%

(Billions of JPY unless otherwise noted. Source: FY2025 Consolidated Financial Overview, P.35.)

Key Product Sales (Domestic / Export)

Chugai’s materials present performance by originated global product rather than by business segment. Hemlibra and Actemra remained the largest contributors to both domestic and export sales, with Hemlibra domestic sales up 6.3% and export sales up 12.0% year on year. PiaSky, newly launched in Japan, posted domestic sales growth of 165.4% year on year.

Product	Domestic Sales FY2025 (bn JPY, YoY)	Export Sales FY2025 (bn JPY, YoY)
Hemlibra	62.7 (+6.3%)	344.5 (+12.0%)
Actemra	50.5 (+5.2%)	158.2 (+19.9%)
Alecensa	33.5 (+8.1%)	59.2 (-5.7%)
Enspryng	29.2 (+18.2%)	11.3 (-18.1%)
PiaSky	6.9 (+165.4%)	– (-%)

(Source: Summary of Chugai Originated Global Products, P.51. ‘Export’ includes Taiwan local sales in the Chugai territory.)

Pipeline & R&D Highlights

In FY2025, Chugai confirmed proof of concept (PoC) for NXT007 and achieved successful Phase 3 results together with a regulatory filing for orforglipron (out-licensed to Eli Lilly and Company). The company executed 6 Go/No-Go decisions and discontinued in-house development of 5 projects, while signing 12 new research and technology collaborations, and acquired sparsentan for IgA nephropathy. Recent regulatory milestones as of January 29, 2026 include the approval of Tecentriq for unresectable thymic carcinoma and the addition of a subcutaneous injection dosage form for Lunsumio, both in December 2025, and the U.S. filing of orforglipron for obesity in Q4 2025.

FY2026 Forecast

For FY2026, Chugai forecasts revenue of 1,345.0 billion JPY (+6.9% YoY) and operating profit of 670.0 billion JPY (+7.5% YoY), both expected to reach record highs, mainly on growth in domestic sales and other revenue including royalty income. Operating margin is expected to remain high at 49.8%. Domestic sales are expected to grow on new product Lunsumio and mainstay products despite NHI drug price revisions and generic penetration; overseas sales are expected to be roughly flat as growth in NEMLUVIO and Hemlibra offsets generic penetration of Actemra; other revenue is expected to rise on higher royalty and profit-sharing income and one-time income.

Item	FY2026 Forecast	FY2025 (Actual)	Change (YoY)
Revenue	1,345.0	1,257.9	+87.1 / +6.9%
Domestic sales	498.0	472.4	+25.6 / +5.4%
Overseas sales	602.0	605.4	-3.4 / -0.6%
Other revenue	245.0	180.1	+64.9 / +36.0%
Cost of sales	-383.5	-351.5	-32.0 / +9.1%
Cost to sales ratio	34.9%	32.6%	+2.3%p
Research and development	-190.0	-180.1	-9.9 / +5.5%
Selling, general and administration	-102.0	-103.2	+1.2 / -1.2%
Operating profit	670.0	623.2	+46.8 / +7.5%
Operating margin	49.8%	49.5%	+0.3%p
Net income	485.0	451.0	+34.0 / +7.5%
EPS (JPY)	295.00	274.02	+20.98 / +7.7%

(Billions of JPY unless otherwise noted. Source: P/L 2026 Forecast, P.47.)

Shareholder Returns

The annual dividend for 2025 is planned to be 272 JPY per share, comprising a regular dividend of 122 JPY together with an additional 100th anniversary dividend of 150 JPY. In 2026, the annual dividend is expected to be 132 JPY per share.

Item	2025 (Plan)	2026 (Expected)
Annual dividend per share (JPY)	272	132
– Regular dividend (JPY)	122	132
– 100th anniversary dividend (JPY)	150	–

Medium-Term Plan / Topics

Chugai’s TOP I 2030 growth strategy, targeting “double R&D output” and “launch global in-house products every year,” progressed on track over its first five years, including establishment of a robust Value Delivery function, progress in production and supply systems, and continued inclusion in the Dow Jones Best-in-Class Index (formerly DJSI) World. For 2026, priority items include strengthening the hemophilia franchise, achieving the highest number of regulatory application plans in the company’s history, and strengthening digital infrastructure and company-wide AI utilization under the “Chugai AI Strategy” announced during the year.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.