Chugai Posts 1,068.1 Billion Yen in 9-Month Revenue, Keeps Annual Forecast
Key Facts
Chugai Pharmaceutical said on October 27 that revenue for the nine months ended in September totaled 1,068.1 billion yen, up 17.2% year over year. Core operating profit rose 19.0% to 536.1 billion yen, and core net income increased 20.2% to 384.7 billion yen. The company kept its fiscal 2026 forecast unchanged, projecting revenue of 1,345.0 billion yen, core operating profit of 670.0 billion yen and core net income of 485.0 billion yen. Revenue had reached about four-fifths of the annual target in the nine months, while core operating profit was also close to four-fifths of its target.
Under International Financial Reporting Standards, operating profit was 522.6 billion yen, up 21.6%, while net income rose 22.8% to 375.3 billion yen. These figures use a different measure from the core earnings the company uses in its annual forecast. Product sales totaled 906.8 billion yen, up 14.1%, while other revenue came to 161.3 billion yen, up 37.7%. Growth in other revenue outpaced product sales during the period. Chugai attributed the increase to higher royalty income, particularly related to Hemlibra and NEMLUVIO, as well as growth in one-time revenue.
In Japan, the company said sales rose on the back of key products Polivy, Hemlibra and Vabysmo, along with newer products Lunsumio and Elevidys. It added that these products grew despite the impact of national drug price revisions and the spread of generic drugs. But nine-month growth was also affected by shipment timing, as Chugai brought forward its delivery schedule to wholesalers so shipments would be completed by the end of the third quarter, from July to September 2026. The company said this increased domestic sales. It linked the arrangement to preparations for a new domestic enterprise resource planning system, making shipment timing an important factor when assessing the period’s results.
Outside Japan, sales rose from the same period of the previous fiscal year, Chugai said. The company attributed the increase to growth in exports of Alecensa to Roche and a sharp rise in exports of NEMLUVIO to Galderma. These drivers differ from the previous annual outlook, which pointed to potential pressure from a decline in Actemra; the published nine-month results showed growth in overseas sales. Roche held 59.89% of Chugai’s issued shares and 61.12% of its voting rights, according to company data as of June 30, 2026. That ownership reflects an institutional link between the companies, while Roche also featured in the Alecensa export channel that contributed to overseas sales growth.
The annual outlook indicates that other revenue will continue to account for part of revenue growth: Chugai expects it to reach 245.0 billion yen in fiscal 2026, up 36.0%. Of that total, it expects royalty and profit-sharing income to reach 217.2 billion yen, up 25.8%. By contrast, research and development expenses are forecast at 190.0 billion yen, up 5.5%, while selling, general and administrative expenses are projected at 102.0 billion yen, down 1.2%. The company also expects the cost-of-sales ratio to be 34.9%, an improvement of 2.3 percentage points from the previous year, citing a change in product mix as one factor behind the improvement. These targets are based on a 2025 core revenue base of 1,257.9 billion yen, up 7.5%, and core operating profit of 623.2 billion yen, up 12.1%.
Ahead of the results announcement, Chugai’s depositary receipt, listed under ticker CHGCY, moved from a close of $20.47 on October 20 to $20.52 on October 21, then $21.20 on October 22 and $21.54 on October 23. It closed at $21.79 on October 26, the latest close reported before the company’s announcement. Chugai published its nine-month results on October 27 at 17:00 Japan time and scheduled its results briefing for 18:00 the same day. The results allow investors to compare nine-month performance with the annual targets the company left unchanged, with the final quarter of the fiscal year still remaining to achieve them. Investors following the annual report will focus on the path of domestic sales after shipments were brought forward, and on whether export and royalty growth continues.