CHUGAI PHARMACEUTICAL CO., LTD
'We had another successful quarter with a limited impact from the COVID-19 pandemic on financial performances though we saw wide-ranging influences on our activities. We obtained approval for the first recycling antibody Enspryng, one of our next growth drivers. Also, structural reforms of corporate functions progressed well to enhance the business platform. Under increasingly uncertain business conditions, we will continue striving to realize innovation that is only possible at Chugai,' said
Half year results for 2020
Despite the slight decrease in domestic sales affected by the NHI drug price revisions and the market penetration of generic drugs, Chugai reported a double-digit growth year-on-year in revenues and operating profit for the half year (Core-basis), due to increases both in overseas sales and royalties and other operating income.
Revenues increased by 14.9%. Among sales, domestic sales decreased by 2.6% due to a decrease in sales of mainstay products mainly in the Oncology and Renal diseases areas affected by the NHI drug price revisions in April this year, and the market penetration of generic drugs. On the other hand, overseas sales increased by 39.5% due to an increase in export of Actemra to
Cost to sales ratio improved by 2.2 percentage points at 42.9% mainly due to a larger proportion of in-house products in the total product mix. Operating expenses increased slightly in total. Marketing and distribution expenses and general and administration expenses decreased due to lower business activities caused by the spread of COVID-19. Research and development expenses recorded a double-digit increase with the projects progressing largely as expected at the beginning of the year. Operating profit increased by 38.8% due to the strong increase in royalties and profit-sharing income, and a better cost to sales ratio.
The Company also made a good progress in research and development. Chugai obtained regulatory approval for the anti-IL-6 receptor recycling antibody Enspryng, created by Chugai for the prevention of relapses of neuromyelitis optica spectrum disorder (including neuromyelitis optica) in
Initiatives for COVID-19 and impact on performance
Regarding the impact of COVID-19 on performance during the six months under review, there were no major negative impacts on revenues and profits. However, the company faced a range of influences on the progress of business activities as below.
Product supply system maintained stable by taking measures to prevent infection of employees and business partners. No impacts on the product supply have been seen both in
Delay of the introduction of new products and those with additional indications, such as Tecentriq and Hemlibra, in the domestic market due to various reasons including restrained sales activities and decreases in hospitalizations and outpatients.
Increase in export of Actemra to
No major impacts on the timing of regulatory filing or approval.
Some delays in the initiation and progress of clinical trials for projects under development. These delays are expected to be resolved in time.
No delays in drug discovery activities for high-priority projects.
Construction for Chugai Life Science
Some expenses suppressed mainly due to cancellation of overseas travels and restrained sales activities in
About Core results
Chugai discloses its results on a Core basis from 2013 in conjunction with its decision to apply IFRS. Core results are the results after adjusting non-Core items to IFRS results, and are consistent with the Core concept disclosed by
Contact:
Tel: +81-3-3273-0881
Email: pr@chugai-pharm.co.jp
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