Astellas Pharma Inc. Q4 FY2025 earnings call

• FY2025 financial results: Revenue exceeded 2 trillion yen, core operating profit exceeded 550 billion yen, both record highs. SG&A ratio improved by 2.3 percentage points. Pipeline progressed with PAD-SEV in MIBC development, three POCs achieved in 2025, and external assets licensed. - FY2026 outlook: Revenue expected to expand over 2.2 trillion yen, co-OP expected to increase by 12% to over 600 billion yen, SG&A ratio expected to improve by 2.3 percentage points, plan to increase R&D investment, and forecast dividend per share at 80 yen up to ¥2. - Corporate strategy: Transformed organizational culture and operating model, established foundation to overcome extended exclusivity, maximized potential of strategic brands, increased pipeline value, and achieved cost optimization through SMT.

Revenue reached over 2.1 trillion yen and core operating profit exceeded 550 billion yen in FY2025. Strategic brands' sales combined strongly grew by over 140 billion yen year-on-year. For example, five strategic brands' sales reached 480 billion yen in total, up by 143.9 billion yen or 43% year-on-year. PADSEV sales increased to 221.2 billion yen, up by 57.1 billion yen or 35% year-on-year. ISAVE sales rose to 77.6 billion yen, up by 19.3 billion yen or 33% year-on-year. VILOI sales reached 63.1 billion yen, substantially up by 50.9 billion yen year-on-year. Vioza and Zosparta sales rose steadily, with extended sales increasing to 960.8 billion yen, up by 48.5 billion yen or 5% year-on-year.

• FY2026 revenue expected to exceed 2.2 trillion yen, driven by growth of strategic plans by over 130 billion yen year-on-year. - Plan to achieve about 40 billion yen cost optimization through SMT. - Co-OP expected to increase by 12% to over 600 billion yen, and co-OP margin projected to rise to 27.9%. - Plan to conduct multiple filings and regulatory decisions for PACSA for MRBC, initiate phase 3 trials for CTD-aggressive and ASP2138. - Forecast dividend per share at 80 yen up to ¥2.

• Risks associated with forward-looking statements based on assumptions and beliefs, subject to significant risks and uncertainties. - Potential risks related to market dynamics, competitive landscape, regulatory approvals, and execution of cost optimization and pipeline development initiatives. - Risks related to external factors such as patent situations, price reductions, and geopolitical issues like the Middle East situation impacting supply chain and product delivery.

• Q: About individual product disclosure, A: Focus on five strategic brands as a whole rather than individual products, will explain next CSP on May 26. - Q: About Xtendi, MIBC outlook, A: Xtendi fourth quarter weak due to market factors, PADSEV growth expected with U.S. and Europe dynamics, iSurvey regrown from lower base. - Q: About large-sized M&A, A: No intention for rescue BD, focus on existing pipeline and primary focuses. - Q: About dividend increase, A: Stable dividend policy based on mid to long-term performance, cash flow and financial performance support increase. - Q: About pipeline, A: KRAS target important, CT digressive ahead in PDAC and lung cancer, ASP2998 and others in clinical development. - Q: About SMT, A: 40 billion yen cost optimization in FY2026, longer term projects in FY2027. - Q: About U.S. business environment, A: Prepared for negotiation with authorities, consider market access and regulations. - Q: About Zospata, A: Primary endpoint not met, not pursuing indication globally, but Zospata on stable growth path. - Q: About FI2026 forecast, A: U.S. fourth quarter impacted by IRA, ex-U.S. growth to slow but still room. - Q: About intangible assets, A: Intangible asset impairment related to gene therapy, shift focus to new projects. - Q: About Kelonia collaboration, A: Terminated in vivo CAR-T project, no intention to acquire Kelonia. - Q: About K-RAS and ASP2998, A: Revolutions pan-RAS has different adverse events, ASP2998 design focuses on TROP2 targeting. - Q: About Middle East impact, A: No big impact so far, monitor supply chain issues