Fuji Pharma Co.,Ltd. Q1 FY2025 earnings call

• Core Business Positioning

  • Fuji Pharma Co., Ltd. is a pharmaceutical company centered on women's healthcare, with a core business of developing and self-distributing pharmaceuticals covering women's life stages including menopausal disorders, dysmenorrhea, contraception, and infertility. The company also operates biosimilar and CMO businesses as supplementary segments.
  • The company holds leading market share in core women's healthcare product categories: 44% domestic market share for oral contraceptives (2023 data) and 47% domestic market share for intravaginal progesterone preparations (2023 data). Long-term operation and a broad product portfolio have built strong connections with clinical settings and wide prescription penetration.
  • In March 2026, the company launched Lesoel 72, a generic emergency contraception (morning-after pill) that is approved for over-the-counter sale without a prescription at pharmacies and drugstores. This launch further expands the company's women's healthcare product line and creates opportunities to develop new sales channels.

• Profitability Improvements

  • Revenue growth of high-margin new products and favorable product mix drove profit growth in the 2025 September full year period. In the first quarter of the 2026 September fiscal year, key products in women's healthcare and biosimilars outperformed initial sales forecasts, with growth of high-margin products driving significant profit improvement.
  • The increasing proportion of innovative proprietary products and new products in the overall product mix has directly contributed to improved overall profitability.

• Dividend Policy

  • The company maintains a progressive dividend policy with a target payout ratio of 30% or higher. The forecast dividend per share for the 2026 September fiscal year is 47 yen, representing an expected dividend yield of approximately 2.00% based on the closing price of 2,346 yen as of March 6, 2026.

For the 2025 September full year period:

1. Women's Healthcare: 22.37 billion yen in revenue, contributing 43.3% of total company revenue
2. Other Products: 18.99 billion yen in revenue, contributing 36.7% of total company revenue
3. CMO (Contract Manufacturing Organization): 8.34 billion yen in revenue, contributing 16.1% of total company revenue
4. Biosimilars: 1.97 billion yen in revenue, contributing 3.8% of total company revenue

For the first quarter of the 2026 September fiscal year:

1. Alissa Combination Tablets: 0.771 billion yen in revenue, a 260.0% year-over-year increase
2. Efmeno Capsule: 1.72 billion yen in revenue, a 91.3% year-over-year increase

• Women's Healthcare Medium-Term Target: The company targets 38.0 billion yen in women's healthcare revenue by the 2029 September fiscal period, up from 20.3 billion yen in the 2024 September fiscal period. Alissa Combination Tablets, the company's new dysmenorrhea treatment drug, is expected to be the core growth driver and grow to 10.0 billion yen in revenue by 2029. This target is supported by the expanding dysmenorrhea treatment market, where usage of LEP (low-dose estrogen progestin) treatments approximately doubled between 2019 and 2023, with annual usage exceeding 1,000,000 sheets in 2023, creating significant room for further growth.
• Biosimilar Guidance: The company upwardly revised its 2026 September fiscal year biosimilar revenue forecast from 3.72 billion yen to 4.48 billion yen, and maintains a medium-term target of 15.0 billion yen in biosimilar revenue by the 2029 September fiscal period. This growth is supported by Japanese government policy that sets a target of increasing the share of active ingredients with biosimilar adoption of 80% or higher to 60% of all eligible active ingredients by the end of fiscal 2029; this share stood at only 22.2% in fiscal 2024, leaving large room for market expansion.

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