CHUGAI PHARMACEUTICAL CO., LTD.
Q2 Results (Jan - June 2021) Conference Call
July 26, 2021
Event Summary
[Company Name] | CHUGAI PHARMACEUTICAL CO., LTD. | |
[Company ID] | 4519-QCODE | |
[Event Language] | JPN | |
[Event Type] | Earnings Announcement | |
[Event Name] | Q2 Results (Jan - June 2021) Conference Call | |
[Fiscal Period] | FY2021 Q2 | |
[Date] | July 26, 2021 | |
[Number of Pages] | 47 | |
[Time] | 17:00 - 18:41 | |
(Total: 101 minutes, Presentation: 60 minutes, Q&A: 41 minutes) | ||
[Venue] | Dial-in | |
[Venue Size] | ||
[Participants] | ||
[Number of Speakers] | 5 | |
Osamu Okuda | President & CEO | |
Toshiaki Itagaki | Executive Vice President & CFO | |
Tetsuya Yamaguchi | Senior Vice President, Head of Project & Lifecycle | |
Management Unit | ||
Shinji Hidaka | Vice President, Head of Marketing & Sales Div. | |
Toshiya Sasai | Head of Corporate Communications Dept. | |
[Analyst Names]* | Fumiyoshi Sakai | Credit Suisse Securities (Japan) Limited |
Seiji Wakao | JPMorgan Securities Japan Co., Ltd. | |
Hidemaru Yamaguchi | Citigroup Global Markets Japan Inc. | |
Kazuaki Hashiguchi | Daiwa Securities Co. Ltd. | |
Motoya Kohtani | Nomura Securities Co., Ltd. | |
Shinichiro Muraoka | Morgan Stanley MUFG Securities Co., Ltd. |
*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A.
Support | |||
Japan | 03.4405.3160 | North America | 1.800.674.8375 |
Tollfree | 0120.966.744 | Email Support | support@scriptsasia.com |
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Presentation
Sasai: Thank you very much for taking time out of your busy schedule to join us today for the briefing on the financial results for the second quarter of fiscal year 2021. I'm Sasai, from the Corporate Communications Department. I'll be your host for today. Thank you for your cooperation.
In order to prevent the spread of the coronavirus infection, today's session will be conducted in the form of a conference call.
The agenda for today's meeting can be found on page 3 of the presentation materials.
Questions will be taken after all presentations have been completed.
Dr. Okuda will now provide a summary of the second quarter. Thank you.
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Okuda: Hello. I'm Osamu Okuda, the President and CEO of Chugai Pharmaceutical Co., Ltd.
I will now give a summary of the second quarter results. Please refer to page 5 of the slides.
Sales revenue for the period from January to June was JPY390.2 billion, an increase of 6% from the same period last fiscal year. Operating profit and net income also increased by more than 15% compared to the same period last year. In the first quarter, from January to March, we started the year with a decrease in profit and a decrease in revenues. In the first half overall, however, there has been an increase in revenues and an increase in profit.
Looking at the rate of progress toward the full-year forecast, domestic product sales, ROOI, and royalties exceeded the initial forecast. In particular, royalties are directly related to profits from the growth in overseas local sales of in-house products. As a result, operating profit and net income were also stronger than expected.
In addition to these factors, there are upsides such as Ronapreve and exports of Actemra in the second half and beyond. I will discuss these in the next slide. Together, these factors are expected to result in a fifth consecutive year of increased full-year sales and profits.
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Next, let's discuss the upside factors of the top line.
Please see page 6. In this section, we have picked out and shown the upside factors from the initial forecast in the top line.
In terms of domestic product sales, hepatocellular carcinoma, for which the indication for use for Tecentriq was expanded in September last year, is showing strong market penetration. In addition, although not shown in this graph, Kadcyla is also seeing strong penetration of its adjuvant for HER2-positive breast cancer, for which the indication was expanded last August.
As for Avastin, the penetration of biosimilars has been slower than expected. In addition, Enspryng, which was launched last year, has seen a progress rate of 87.5%, showing penetration beyond our expectations.
As announced in the press release, Ronapreve, an antibody cocktail therapy for COVID-19, received special approval for emergency on July 19. Based on an agreement with the Japanese government, the government will purchase the treatment in the current fiscal year. Unfortunately, we are not able to disclose the total purchase quantity or price.
Sales of Ronapreve are an upside factor that was not included in the full-year forecast at the beginning of the fiscal year. Once the results are posted, we plan to disclose them as "Other" in the primary area.
The full-year forecast for Actemra exports included only a limited amount of COVID-19-related information. As shown here, the progress of exports of Actemra for Roche in the first half of the fiscal year has been low, but this is due to the timing of exports and is in line with our expectations at the beginning of the fiscal year. In the second half of the fiscal year, exports of Actemra are expected to exceed the full-year forecast.
ROOI and royalties progressed better than expected in the first half of the fiscal year due to growth in local sales of Actemra overseas related to COVID-19. In the second half of the fiscal year, we expect the increase to exceed our full-year forecast.
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Chugai Pharmaceutical Co. Ltd. published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 07:02:06 UTC.