Ono Pharmaceutical . Stock Earnings Reports

Key points for investors:

- Q1 consolidated core revenue rose to JPY127.5 billion (+8.4% YoY), the highest Q1 sales on record, driven primarily by the acquisition of Deciphera (QINLOCK, ROMVIMZA) and continued strength of FORXIGA in Japan. Overseas sales growth was largely from Deciphera products (QINLOCK JPY8.9bn; ROMVIMZA JPY1.1bn in Q1).

- Core operating profit fell to JPY31.6 billion (-10.1% YoY). The main drag was Deciphera's operating loss (~JPY4.8 billion) included this period; excluding Deciphera the company saw a small operational improvement. Full-IFRS operating profit and net profit were also down due to amortization and acquisition-related adjustments.

- Management left the full-year guidance unchanged. They expect to remain on plan for the year, with operating profit roughly in line with targets after incorporating Deciphera and continued investment for growth.

- OPDIVO: Domestic sales pressured by intensified competition (notably in gastric and lung cancer). Management is running targeted commercial campaigns to recover new-prescription share (targets: gastric new-prescription share back to ~70%; first-line lung cancer new-prescription share target 30% with focus on PD-L1-negative segment; FY2025 OPDIVO sales projection JPY125 billion). Recent approvals (OPDIVO+YERVOY first-line hepatocellular carcinoma; subcutaneous formulation approval in Europe) provide upside.

- Development pipeline: Several regulatory filings progressing (ROMVIMZA positive opinion in Europe; pending OPDIVO+YERVOY MSI-H colorectal and BRAFTOVI filings). Some timing shifts: bladder cancer adjuvant (ONO-4538-86) and CheckMate 9DX adjuvant HCC filing moved later (data timing). ONO-7475 discontinued for strategic reasons.

- New in-licensing: Acquired Japan/South Korea rights to povetacicept (BAFF/APRIL dual antagonist) from Vertex for B-cell-mediated autoimmune diseases (Phase III for IgA nephropathy underway). Management positions povetacicept as potentially best-in-class based on mechanistic rationale (dual BAFF/APRIL inhibition).

- Other notes: Sapablursen (nucleic acid program) activities and other earlier-stage oncology/non-oncology programs continue; management is prioritizing late-stage replenishment via licensing-in while keeping early-stage portfolio active with efficient go/no-go decision-making. Near-term commercial upside expected from Deciphera products (QINLOCK, ROMVIMZA) and new OPDIVO indications, but competition and timing of clinical readouts remain key risks.