Kidswell Bio Corporation · TSE:4584
Kidswell Bio — Q2 FY2025 Earnings Presentation
21 slides from Kidswell Bio's earnings presentation, Nov 12, 2024
Slide 1: Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2025
Biotech Striving for Value Creation - For a Comprehensive Healthcare System for Children, Families, and Society - Security Code: 4584 Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2025 November 12, 2024 Kidswell Bio Corporation © 2024 Kidswell Bio Corporation. 1
Slide 2: Agenda
◆ Financial Highlights and Forecasts ◆ Revised timeline for achieving Agenda operating profitability ◆ Initiatives in Maximizing Corporate Value © 2024 Kidswell Bio Corporation. 2
Slide 3: Financial Highlights and Forecasts
Financial Highlights and Forecasts © 2024 Kidswell Bio Corporation. 3
Slide 4: Income statement
Income statement (Unit: thousand yen) FY2023 FY2024 Subject 2Q Results 2Q Results 2Q Results Year-on- KWB Non-consolidated (non-consolidated) (consolidated) year ratio (non-consolidated) Gross sales 1,116,111 1,749,911 157% 1,748,698 Cost of goods sold 420,954 1,257,582 299% 1,257,582 Gross profit 6
Slide 5: Balance Sheet
Balance Sheet (Unit: thousand yen) Subject 4Q FY2024 (non-consolidated) 2Q FY2025 (consolidated) Current assets 4,924,221 4,352,772 (Cash and cash equivalents) 2,231,411 1,695,373 (Accounts receivable) 881,407 507,843 (Products) -- -- (In-process inventory) 875,654 752,698 (Advance payments) 739,567
Slide 6: Outlook for the current fiscal year (ending March 31, 2025)
Outlook for the current fiscal year (ending March 31, 2025) • Completed adjustments of manufacturing and delivery schedules and supply volumes of biosimilars with partner pharmaceutical companies • Revenue expected to grow significantly due to strong demand for GBS-007 and GBS-010 • Revenue growth a
Slide 7: Impact of foreign exchange fluctuations on business performance
Impact of foreign exchange fluctuations on business performance • Gross profit margin: All biosimilar APIs are manufactured overseas, so exchange rate fluctuations have a direct impact ➢ The sharp depreciation of the yen since 2022 has led to an increase in cost of sales in USD, paid in JPY and a si
Slide 8: Impact of inflation on business performance
Impact of inflation on business performance • Global price increases have driven up the cost of labor, supplies and raw materials required to manufacture biosimilars, resulting in lower profitability for the biosimilar business • The pace of price increases is gradually slowing and the increase in m
Slide 9: Future revenue outlook for biosimilars business
Future revenue outlook for biosimilars business • Further revenue growth is anticipated, following approval of GBS-010 and indication addition for GBS-007 last year • Based on past market trends, earnings grow is expected since demand for drugs including biosimilars are less susceptible to external
Slide 10: Revised timeline for achieving operating profitability
Revised timeline for achieving operating profitability © 2024 Kidswell Bio Corporation. 10
Slide 11: Deviation from the mid-term management plan KWB 2.0
Deviation from the mid-term management plan KWB 2.0 ✓ Achieved the mid-term management plan’s revenue target of JPY3Bn for this fiscal year, with further expansion expected from 2025 onwards. ✓ Gross margin expected to improve significantly due to approval of manufacturing cost reduction at the curr
Slide 12: Change in timing of effect of manufacturing cost reduction measures
Change in timing of effect of manufacturing cost reduction measures • We completed process development with a new CMO to reduce manufacturing costs for API production. However, since the approval timeline is delayed from the initial plan, there is a risk of API supply shortages considering the formu
Slide 13: Future initiatives to achieve operating profitability and maximize profit margins
Future initiatives to achieve operating profitability and maximize profit margins We will maintain a stable supply system, secure additional approvals for new API manufacturing partners, advance the formulation of APIs produced by these partners, and ensure effective management of R&D and fixed cost
Slide 14: Initiatives in Maximizing Corporate Value
Initiatives in Maximizing Corporate Value © 2024 Kidswell Bio Corporation. 14
Slide 15: Planned key initiatives: Biosimilars (KWB)
Planned key initiatives: Biosimilars (KWB) FY2024 FY2025 Initiative Progress (current FY) (next FY) Maintaining stable supply through • Deliveries completed as scheduled in the first adjustments to the manufacturing half of the year schedule and addressing deviations Marketed BS Manufacturing cost r
Slide 16: Planned key initiatives: Cell therapy (S-Quatre)
Planned key initiatives: Cell therapy (S-Quatre) FY2024 FY2025 Initiative Progress (current FY) (next FY) Supporting clinical research at Nagoya • SHED administration and observation in progress University for cerebral palsy • To be updated at the Dec 3rd R&D briefing 1st generation • Negotiations w
Slide 17: Planned key initiatives: Group-wide management strategy
Planned key initiatives: Group-wide FY2024 FY2025 Initiative Progress (current FY) (next FY) 1. Efficient Restruction of corporate • Reviewing evaluation system in alignment with utilization of culture and systems FY2023 organizational restructuring resources Maximizing the use of management resourc
Slide 18: Improving cash flow and fundraising in the biosimilars business
Improving cash flow and fundraising in the biosimilars business • Significantly reduced working capital* through shortened periods from payment issuance to cash collection and adjusted payment conditions, thereby stabilizing cash flow by negotiating with partner pharmaceutical companies • We will co
Slide 19: IR Schedule for FY2024 (tentative)
IR Schedule for FY2024 (tentative) IR Basic Policy • Improve communication with shareholders and investors to enhance their understanding of KWB and enable them to evaluate KWB appropriately • Improve the quality of the information provided instead of simply providing frequent briefings 1Q 2Q 3Q 4Q
Slide 20: KIDS WELL, ALL WELL
KIDS WELL, ALL WELL こどもの力になれること、こどもが力になれること © 2024 Kidswell Bio Corporation. 20
Slide 21: Disclaimer
This information material is provided for understanding Kidswell Bio Corporation (“KWB”), not for soliciting investment in KWB shares. Information provided in this material may contain so-called “forward-looking statements.” These statements are based on current expectations, forecasts, and assumpti