Kaken Pharmaceutical Co., Ltd.TSE: 4521

Consolidated Financial Results for the Six-Months Period of Fiscal 2024

Nov 11, 2024 at 3:04 AM UTC · Issued by Kaken Pharmaceutical Co., Ltd.

Consolidated Financial Results

for the Six-Months Period of Fiscal 2024

(Six-Months Period ended September 30, 2024)

November 11, 2024

KAKEN PHARMACEUTICAL CO., LTD.

Cautionary notes regarding forward-looking statement

The performance forecasts described in this material are rational based on the information currently available and have been determined by the Company as reasonable.
Considerable financial investment and a long development time are required before a new drug is launched. The Company carefully develop new drugs by confirming their efficacy and safety. There is a possibility that their development may be discontinued before completion, in such case where anticipated efficacy has not been proven or safety issues have been identified.
The "Projects under Development" is based on the current development plans.
The status may change depending on their progress.
The information about pharmaceutical products (including those under development) included in this material is not intended as an advertisement or medical advice.

Agenda

		Consolidated Financial Results for the Six-Months Period of
1
		FY2024

2Update on Projects under Development

		Analysis of the Current Status of the Long-Term Business
3
		Plan 2031 in Light of the Business Environment

1Consolidated Financial Results for the Six-Months Period of FY2024

Hiroyuki Horiuchi

President and Representative Director

Consolidated Statements of Income

	(amounts are rounded down to the nearest million yen)

	2Q of	2Q of	YoY	Change
	FY2023	FY2024	Change	(％)

Net Sales	36,171	51,372	15,201	142.0%

Cost of Sales	16,450	17,269	819	105.0%

Gross Profit	19,720	34,103	14,382	172.9%

Selling, General and	14,207	14,523	315	102.2%
Administrative Expenses


R&D Expenses	5,738	5,973	235	104.1%

Operating Profit	5,512	19,579	14,066	355.2%

Ordinary Profit	5,722	19,823	14,100	346.4%

Profit before Income Taxes	5,658	19,235	13,576	339.9%

Profit	4,068	14,286	10,217	351.2%

Net Sales Bridge

(amounts are rounded down to the nearest million yen)

2Q of
36,171
FY2023

Domestic pharmaceuticals and medical devices

Crop protection products

+15,201

YoY change

142.0％

Real estate

Others (overseas

pharmaceuticals, bulk substances, etc.)

2Q of FY2024

+1,129

▲70

+14,113

51,372

Domestic pharmaceuticals and medical devices

->Mainly from increased sales of Artz due to the end of sales of competing product.

Crop protection products

->Sales of Polyoxin, a major products in crop protection, decreased due to the impact of inventory adjustments at overseas customers.

Real estate ->About the same sales level
Others (overseas pharmaceuticals, bulk substances, etc.) ->Sales increased due to receipt of upfront payment for the
intellectual property (IP) transfer of NM26.

Operating Profit Bridge

2Q of FY2023

Net sales

Cost of sales

+14,066

YoY change

355.2％

SG&A (excl. R&D expenses)

R&D expenses

2Q of FY2024

(amounts are rounded down to the nearest million yen)

5,512

+15,201

+819

+80

+235

19,579

Analysis of Changes

Net sales (increase by 15,201 million) Increased due to overseas sales increase
Cost of sales (increase by 819 million) Increased due to net sales increase
SG&A (excluding R&D expenses) (increase by 80 million)

About the same level compared to previous year

R&D Expenses (increase by 235 million) Increased due to progress in various projects under development

Consolidated Balance Sheets / Consolidated Statements of Cash Flows

Consolidated balance sheet

(amounts are rounded down to the nearest million yen)

	As of Mar.	As of Sep.	YoY
	31, 2024	30, 2024	change

Current assets	106,974	122,681	15,706

Non-current assets	64,648	64,442	▲206

Total assets	171,623	187,123	15,500

Current liabilities	19,024	23,683	4,659

Non-current liabilities	8,843	9,034	191

Total liabilities	27,868	32,718	4,850

Total net assets	143,755	154,405	10,650

【Major changes】

Total assets:
Cash and cash equivalents: ¥83,987 million

(increased by 18,661 million)

Total liabilities:
Interest bearing debt: ¥3,850 million (no change)
Total net assets:
Retained earnings: ¥139,949 million

(increased by 11,443 million)

Treasury stock: ▲¥28,629 million (increased by 15 million)

Consolidated statement of cash flows (amounts are rounded down to the nearest million yen)

	As of Sep.	As of Sep.	YoY
	30, 2023	30, 2024	change

Net cash provided by (used in)	▲245	23,932	24,177
operating activities


Net cash provided by (used in)	▲1,141	▲2,432	▲1,290
investing activities


Net cash provided by (used in)	▲2,813	▲2,839	▲25
financing activities


Cash and cash equivalents at	70,060	83,987	13,926
end of period

【Major changes】

Net cash provided by (used in) operating activities: Profit before income taxes: ¥19,235 million Change in A/R and inventories: ¥43 million
Net cash provided by (used in) investing activities: Purchase of PP&E: ▲¥1,961 million
Purchase of investment securities: ▲¥200 million
Net cash provided by (used in) financing activities: Cash dividend paid: ▲¥2,840 million

Domestic Pharmaceuticals & Medical Devices Sales by Products (Non-consolidated)

(amounts are rounded down to the nearest million yen)

	2Q of	2Q of	YoY	Change
	FY2023	FY2024	Change	(%)

Clenafin	9,199	9,172	▲27	99.7%

Artz	8,929	9,804	874	109.8%

Seprafilm	3,544	3,567	23	100.7%

Fiblast	1,321	1,249	▲72	94.5%

Ecclock	1,387	1,360	▲26	98.1%

Regroth	442	463	20	104.7%

Hernicore	188	205	16	108.9%

Generic Products	4,024	4,279	254	106.3%

Main factors

Clenafin

Sales were at the same level due to NHI price revision while the volume had increased

Artz

Sales increased due to switchover from competing products, which sales had ended

Seprafilm

Sales increased slightly due to switchover from competing products

Ecclock

Sales declined due to share competition and impact from release of new twist bottle in 1Q of last fiscal year

Generic Products

Sales increased due to sales growth of focused products

Disease Awareness Initiatives

First in Class

Breakthrough drugs. New drugs that are the first in their categories to be approved.

Kaken will expand disease awareness and treatment options for untreated patients and medical professionals through disease awareness activities.

■Examples of Initiatives

Use of smartphone apps	Production of disease awareness	Use of Newspaper Advertisements
	posters and pamphlets

Company analysis