May. 02, 2026 Conference on Boost 2028 - Accelerating Strong Sumitomo Pharma - transcript（PDF/6,280KB）

Presentation of Boost 2028 - Accelerating Strong Sumitomo Pharma -March 2, 2026

(Total: 102 minutes, Presentation: 33 minutes, Q&A: 69 minutes)

Toru Kimura Representative Director, President and CEO

Motoyuki Sakai Representative Director, Executive Vice President Global Corporate Strategy; Global Finance Administration External Affairs; Corporate Governance; IT Management & Data Analytics

Yutaka Wakemi Executive Officer Global Corporate Strategy; Global Finance

Koichi Kino Vice President, Head of Corporate Governance

Hidemaru Yamaguchi Citigroup Global Markets Seiji Wakao JPMorgan Securities

Shinichiro Muraoka Morgan Stanley MUFG Securities Hiroshi Wada SMBC Nikko Securities

I am Kino from Corporate Governance and I will be your moderator.

Today, we will be conducting a live Zoom webinar from our Tokyo headquarters. Analysts, investors and media are invited to attend.

In order to ensure smooth proceedings, we would like to make a few announcements and requests. Please change the participant information displayed on your Zoom screen to your company name and name.

We will begin with an explanation of the Company in accordance with the presentation materials posted on our website, followed by a question-and-answer session. The event is scheduled to end at 19:20 PM.

First, let me introduce today's attendees. Toru Kimura, Representative Director, President and CEO; Sakai, Representative Director, Executive Vice President; and Wakemi, Executive Officer, and that is all. Thank you very much.

Now, Kimura will start his presentation, Boost 2028 - Accelerating Strong Sumitomo Pharma. Mr. Kimura, please go ahead.

As you are all aware, after a significant downturn in performance in FY2023, we undertook drastic structural reforms and achieved a V-shaped recovery in performance in FY2024. In Reboot 2027, announced in May of last year, we positioned the period from 2025 to 2027 as a time when important milestones such as stabilization of the revenue base through sales expansion of three core products and commercialization of regenerative medicine, cell therapy, and oncology will be concentrated, and we have been working on business operations to rebuild the value creation cycle.

As a result, as announced earlier, core operating profit is expected to reach a record high of JPY107 billion in FY2025. The financial targets of Reboot 2027, which were targeted to be achieved by FY2027, are expected to be achieved ahead of schedule.

In order to accelerate growth from the V-shaped recovery while continuing disciplined cost management, we have formulated Boost 2028 - Accelerating Strong Sumitomo Pharma as our growth strategy for the period from FY2026 to FY2028. The strategy is to accelerate the growth of Sumitomo Pharma from FY2026 to FY2028.

In addition, as we announced earlier, we are considering a public offering and have registered the issue in order to strengthen our financial base and secure the necessary funds for investment in growth.

Below is a description of Boost 2028.

This is today's content.

First, we will review Reboot 2027 and then will explain about Boost 2028.

The following is a review of Reboot 2027.

First, as I mentioned at the beginning of the presentation, we have achieved our financial targets ahead of schedule. In addition, the Ministry of Health, Labor and Welfare has announced that it expects to approve a drug for the treatment of Parkinson's disease derived from iPS cells, which is one of the three areas we mentioned as part of our efforts to create value as an R&D-oriented pharma.

Many news reports use the name AMCHEPRY, but the name AMCHEPRY itself is also subject to approval, so I will speak here today under the generic name raguneprocel. Both are exactly the same.

In addition, clinical trials are progressing smoothly for the two oncology products. In addition, as we released the other day, good data has been obtained for the universal influenza vaccine.

We will explain the financial targets first.

Core operating profits in FY2025 will be JPY107 billion, a record high core operating profits.

Other than that, we are on track to meet the financial targets of Reboot 2027 ahead of schedule, as we show here. As indicated in the slide about sales of the three key products, core operating profit excluding one-time factors, free cash flow, and interest-bearing debt of the financial targets for Reboot 2027, sales of the three key products are expected to be JPY260 billion, and core operating profit is JPY43 billion after excluding JPY49 billion of information provided by China and other Asian businesses.

Free cash flow is expected to be about JPY47 billion, and the balance of interest-bearing debt is expected to be JPY220 billion, but since there is also cash, net debt is JPY190 billion.

First, let me explain specific results, focusing on sales.

As I mentioned, sales of the three key products totaled JPY260 billion, a 64% increase compared to FY2024. ORGOVYX has shown growth of approximately 90%, with revenue of USD1 billion. GEMTESA has grown to USD600 million in revenue, a 45% increase over the previous year. MYFEMBREE does not show a significant sale, but as we have repeatedly stated, it generates profit individually this year.

In Japan, we have been actively pursuing promotional alliances and have succeeded in forming promotional alliances for Ozempic subcutaneous injection and Wegovy subcutaneous injection.

In addition, we have restructured our Asian business and transferred 60% of our shares to Marubeni Pharma Corporation. Earnings from the Asia business transfer amounted to JPY49 billion.

Next, I would like to discuss the results of research and development.

From the right, clinical trials for two cancer drugs, enzomenib and nuvisertib, are progressing well, mainly in the United States. As for us, we have slightly delayed our schedule, as we will make decisions on partnerships or in-house development to maximize value after the Value Inflection Point is completed, as described as VIP.

Going to the middle, in Japan, we've progressed to the point where we can receive approval for raguneprocel, allogeneic iPS cell-derived dopaminergic neural progenitor cells. In addition, as I will explain later, the universal influenza vaccine that we have been working on in Europe has also made good progress in research and development over the year, with data on antibody cross-reactivity being available.

A list of major development pipelines is shown here. Many of them are what I have just explained, so I would like to move on.

As such, while Reboot 2027 was a three-year plan, we achieved nearly all of its objectives within just one year. Consequently, we have formulated Boost 2028, a plan to accelerate Sumitomo Pharma's growth, as we reorganize our future management strategy. I will now explain this plan.

In Reboot, we have set forth a policy of financial discipline and activities as an R&D-oriented pharma, with the goal of rebuilding the value creation cycle.

Boost, on the other hand, aims to enter a new phase, from value creation to value delivery. The major policy is to expand the foundation for re-growth while maintaining financial discipline, and for the basic strategy of R&D, we intend to promote it.

Next, in order to fully implement our growth strategy, we are considering formulating a new medium-term business plan as soon as the direction of the two oncology products is set.

Our vision is to be a global specialized player. We aim to be a globally active pharmaceutical company, albeit in a specific and limited area.

As indicated in Reboot, we will continue our policy of making the Company a company that can turn in a strong circle, which we call the value creation cycle, a cycle of research and development, sales, profit generation, and reinvestment in new strategies.

We would like to further elaborate the content of Boost.

First is the growth of existing products. The next step is to commercialize approved products that are in the clinical stage. The other is to create even more new things from R&D that will become future growth engines. We are considering these three phases.

The first step is to accelerate the growth trend.

We are now expanding sales of our very good products. This will mean moving forward so that more people can make good use of them.

First of all, ORGOVYX is rapidly expanding its sales due to the revision of IRAs in the United States. However, the market share of our products in the ADT, androgen deprivation therapy, market is still 14%, and we believe that there is still room for further expansion, and we are aiming to achieve sales of JPY250 billion in the 2030s.

Our strategy is to promote our product, ORGOVYX, as the only oral drug that is very easy to use and has few side effects, and to promote the fact that co-payments are greatly reduced by IRAs, thereby promoting sales growth.

Regarding GEMTESA, we believe that the market for beta3 agonists itself will continue to grow, although we are aware that competing generic products are on the market. By promoting the benefits of our products, we hope to reach a scale of JPY150 billion by the 2030s. Within the β3 market, we currently estimate our market share to be approximately 11%. Our goal is to significantly increase this share and aim for JPY150 billion by the 2030s.

Anticholinergics are widely used for overactive bladder, but beta3 drugs are also easier to use. In addition, GEMTESA has many advantages over other beta-3 drugs, including less blood pressure elevation, or faster effect, and no drug interactions. In addition, we would like to further expand the indication and use of this drug for male patients with overactive bladder associated with prostatic hypertrophy, which is a male disease, since it is the only beta3 agonist available.

We will explain about our R&D next.

Our goal in R&D is to be quick to deliver results to as many people as possible.

We are now going to show you our new revenue plan, which is just an image though.

Currently, sales of our three main products, especially ORGOVYX and GEMTESA, are expanding significantly in North America, and with the launch of enzomenib and nuvisertib, we expect the oncology field to expand significantly in the future. We are also looking forward to a large expansion and growth in the field of regenerative and cellular medicine in the 2030s.

I will explain more specifically.

The business potential of the two cancer products is shown here.

As I have said repeatedly, we consider acute leukemia as the target disease for enzomenib.

In terms of selective menin inhibitors, we are well aware that competition in this field is very tough, but we believe that our enzomenib is best-in-class and offers the best treatment option due to its superior efficacy and high safety profile.

We are currently in the process of pivotal study for KMT2-rearragnged and would like to expand indications to include the combination with venetoclax and azacitidine.

With the launch of the single-agent product in FY2027, followed by the continued launch of the combination therapy, we also expect to be able to expand our sales forecast to more than JPY100 billion, with a maximum sales forecast of nearly JPY200 billion.

As for nuvisertib, it is a drug for myelofibrosis. It features a novel mechanism of action as a selective inhibitor of PIM1 kinase.

In the clinical data to date, the data show excellent drug efficacy and high safety. We believe that JAK inhibitors will become the standard therapy in this area in the future, and we would like to foster our product as the first-line drug that can be used in combination with JAK inhibitors.