Santen Pharmaceutical (4536): FY2025 Results Summary — EPS Up 9.7% as All Profit Levels Beat Forecasts

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Santen Pharmaceutical Co., Ltd. (4536) announced its FY2025 financial results (fiscal year ended March 31, 2026) on May 12, 2026. Revenue was JPY 291.6 billion (-2.8% YoY) and core operating profit was JPY 55.1 billion (-7.1% YoY), while operating profit rose to JPY 47.8 billion (+2.0% YoY) and EPS grew to JPY 114 (+9.7% YoY). According to the company, all levels of profits and EPS exceeded forecasts, and core operating profit exceeded the initial forecast, delivering stable EPS growth. For FY2026, the company positions earnings on a trajectory shift to revenue and profit growth as planned, forecasting revenue of JPY 311.0 billion and core operating profit of JPY 59.0 billion.

Consolidated Results (Full-Year Actual)

Revenue declined 2.8% YoY to JPY 291.6 billion, at 99.2% of the JPY 294.0 billion forecast. The company explains that revenue in Japan and China decreased due to an adjustment phase, not fully offset by Asia and EMEA growth. SG&A expenses of JPY 89.0 billion (+1.7% YoY) showed a slight decrease excluding FX impact (-0.9%) due to disciplined and selective spending, while R&D expenses increased to JPY 25.6 billion (+6.1% YoY) driven by pipeline advancement. Core operating profit of JPY 55.1 billion came in at 102.1% of the JPY 54.0 billion forecast; supported by a resilient P&L structure, the profit decline was minimized. Net profit attributable to owners of the company was JPY 37.4 billion (+3.1% YoY, 109.9% of forecast) and EPS was JPY 114 (+9.7% YoY). EBITDA was JPY 63.6 billion (-6.6% YoY).

Item (JPY billions)	FY2025	FY2024	YoY
Revenue	291.6	300.0	-2.8%
Cost of sales	121.9	129.0	-5.5%
Gross profit	169.7	171.0	-0.8%
SG&A expenses	89.0	87.5	+1.7%
R&D expenses	25.6	24.1	+6.1%
Core operating profit	55.1	59.4	-7.1%
Operating profit	47.8	46.9	+2.0%
Net profit attributable to owners of the company	37.4	36.3	+3.1%
EPS (JPY)	114	104	+9.7%
EBITDA	63.6	68.1	-6.6%

Results by Region

By region (sales classified by customer location), Japan revenue fell 11.2% YoY to JPY 146.8 billion, reflecting a decrease in sales of main products due to drug price reductions, driven by GE launches and market expansion re-pricing of Eylea products. China rose 0.5% YoY (excluding FX impact +0.6%) to JPY 30.0 billion on a recovery trend driven by normalization of distribution inventory levels (Cravit, Hyalein). Asia grew 14.0% YoY (excluding FX impact +15.2%) to JPY 33.3 billion on solid performance of glaucoma and dry eye products and the contribution from anti-VEGF products in South Korea since November. EMEA grew 7.8% YoY (excluding FX impact +0.4%) to JPY 80.1 billion on solid performance from new glaucoma products, against one-off revenue from out-licensing in FY2024. Regional contribution profits declined JPY 4.0 billion in total: the YoY decrease in Japan was minimized through improvement in gross profit margin from product mix change and cost optimization, while overseas contribution profits increased.

Region (JPY billions)	FY2025 Revenue	FY2024 Revenue	YoY	FY2025 Contribution profit	FY2024 Contribution profit
Japan	146.8	165.3	-11.2%	52.4	58.5
China	30.0	29.9	+0.5%	13.0	12.3
Asia	33.3	29.2	+14.0%	14.3	13.5
EMEA	80.1	74.3	+7.8%	30.7	30.2

FY2026 Forecast

For FY2026 (fiscal year ending March 31, 2027), Santen states that revenue and core operating profit bottomed in FY2025 and forecasts a return to the growth trajectory: revenue of JPY 311.0 billion (+6.6% YoY), core operating profit of JPY 59.0 billion (+7.0% YoY), operating profit of JPY 49.5 billion (+3.6% YoY), net profit attributable to owners of the company of JPY 40.0 billion (+7.0% YoY) and EPS of JPY 124 (+9.1% YoY). The overseas business is expected to grow 16.4% YoY (YoY excluding FX: China +14.5%, Asia +19.2%, EMEA +9.0%), while in Japan the company prioritizes sustainable adoption over rapid expansion for new products. The company expects an H2-weighted progression in revenue and profit, driven by early maximization of new products’ sales and overseas expansion of existing products. FX assumptions are USD 155.00, EUR 180.00 and CNY 23.00 (JPY).

Item (JPY billions)	FY2026 Forecast	FY2025 (Actual)	YoY
Revenue	311.0	291.6	+6.6%
Core operating profit	59.0	55.1	+7.0%
Operating profit	49.5	47.8	+3.6%
Net profit attributable to owners of the company	40.0	37.4	+7.0%
EPS (JPY)	124	114	+9.1%

Shareholder Returns

For FY2025, Santen paid an annual dividend of JPY 38 per share and executed JPY 31.9 billion in share buybacks (6% of issued shares excluding treasury shares as of the previous fiscal year-end); approximately 20% of outstanding shares have been repurchased and cancelled since FY2022. For FY2026, the company forecasts an annual dividend of JPY 42 per share, an increase of JPY 4 per share annually, reflecting confidence in continuous business growth. Under the FY2025-2029 medium-term management plan capital allocation, the company continues progressive dividends as a function of profit growth with a target 40% dividend payout ratio, and share buy-backs in the absence of investment opportunities, with execution decisions a function of cash level, future investment plans, and share price.

Item	FY2025	FY2026 (Forecast)
Interim dividend per share (JPY)	19	21
Year-end dividend per share (JPY)	19	21
Annual dividend per share (JPY)	38	42
Share buy-back	JPY 31.9 billion (6% of issued shares)	Opportunistic execution dependent on cash level, future investment plans, and share price

R&D and Business Development Topics

In FY2025, Santen launched Ryjusea/Ryjunea, drugs for slowing myopia progression, and Setaneo in glaucoma, and is launching Upneeq for acquired ptosis on May 15, 2026. The company is entering the back-of-the-eye segment in China/Asia and strengthening its glaucoma portfolio in China through in-licensing and sales partnerships: Santen China has entered into a distribution and promotion agreement with AbbVie for five marketed glaucoma eyedrops in the Chinese Mainland (Alphagan, AlphaganP, Lumigan, Ganfort and Combigan). In the pipeline, STN1014300 (eflimrufusp alfa) demonstrated non-inferior BCVA improvement at 52 weeks versus aflibercept in a China Phase 3 trial for diabetic macular edema, meeting the primary endpoint; RemeGen filed a Biologic License Application for DME in September 2025, and a Phase 3 trial for wet age-related macular degeneration is underway. For FY2026, growth drivers cited include further penetration of Ryjusea in Japan with planned inclusion under the Selective Treatment category in June, expansion of Ryjunea launches in EMEA from 7 to 14 countries, full-year contribution of the anti-VEGF sales partnership products Beovu and Lucentis in South Korea, and contribution of sales partnership products with AbbVie in China from Q2. Under the FY2029 medium-term plan, the company targets ROE of 14% and EPS of JPY 160.

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