Asia Healthcare Analyst, Pathology Associates Limited

Dion Stéfan Büchner M.D., FCAP

Asia Healthcare Analyst

Pathology Associates Limited

Equity Bottom-Up

<p><strong>Key highlights</strong></p><ul>
<li>While the pharmaceutical segment (~60% of total sales) stayed flat (+1.2% to ¥200b), the Nutraceutical business (~30% of total) grew briskly by 9.1% to ¥94b - resulting in overall sales growth of 1.9% to ¥330b</li>
<li>Within Pharmaceuticals, ramp-up of global products, including Abilify Maintena (+21% to ¥22b), Rexulti (+43% to ¥18b) and Samsca (+37% to ¥23b) coupled with brisk uptake of recent domestic market launches (including E Keppra, Bilano, Abraxane and Takecab) nullified the adverse impact of price reform led decline in the sales of long listed drugs.</li>
<li>As for cost, while Core (pre-exceptional) SG&amp;A expenses increased by 7% to ¥141b, Core R&amp;D expenses increased by 18% to ¥49b (for accelerated progress of key late stage assets)</li>
<li>As a result, Core EBIT and EPS declined ~32% and 20% to ¥27b and ¥46.14 / share respectively</li>
</ul>

Key highlights
While the pharmaceutical segment (~60% of total sales) stayed flat (+1.2% to ¥200b), the Nutraceutical business (~30% of total) grew briskly by 9.1% to ¥94b - resulting in overall sales growth of 1.9% to ¥330b
Within Pharmaceuticals, ramp-up of global products, including Abilify Maintena (+21% to ¥22b), Rexulti (+43% to ¥18b) and Samsca (+37% to ¥23b) coupled with brisk uptake of recent domestic market launches (including E Keppra, Bilano, Abraxane and Takecab) nullified the adverse impact of price reform led decline in the sales of long listed drugs.
As for cost, while Core (pre-exceptional) SG&amp;A expenses increased by 7% to ¥141b, Core R&amp;D expenses increased by 18% to ¥49b (for accelerated progress of key late stage assets)
As a result, Core EBIT and EPS declined ~32% and 20% to ¥27b and ¥46.14 / share respectively


大塚製薬 2018年度第3四半期（2018年12月期）決算概要

Otsuka Holdings

大塚製薬 2018年度第3四半期（2018年12月期）決算概要