Astellas(US:ALPMY)2024-04-26 22:00Financial Data and Key Metrics Changes - Revenue increased to JPY1,603.7 billion, up 5.6% year-on-year, achieving 102.7% of the full year forecast [10] - Core operating profit was JPY184.6 billion, down by 35.6% year-on-year, but exceeded the full year forecast at 112.6% [10] - Operating profit decreased to JPY25.5 billion, down by 80.8% year-on-year, and profit decreased to JPY17 billion, down 82.7% year-on-year [11] Business Line Data and Key Metrics Changes - XTANDI sales increased to JPY750.5 billion, up by about JPY90 billion or 14% year-on-year [12] - PADCEV global sales increased to JPY85.4 billion, up 92% year-on-year, realizing nearly twofold growth [13] - XOSPATA global sales increased to JPY55.1 billion, up 18% year-on-year [16] - VEOZAH sales reached JPY7.3 billion, progressing in line with the forecast [16] - IZERVAY sales reached JPY12.1 billion, exceeding the full year forecast [18] Market Data and Key Metrics Changes - Commercial lives covered for VEOZAH expanded to 50% as planned by the end of March [17] - The number of launched countries for PADCEV increased to 36 in total [15] Company Strategy and Development Direction - The company aims to maximize product value through active life cycle management and indication expansion [41] - The focus is on sustainable growth through strategic product launches and pipeline development [22][44] - The company plans to review management resource allocation and implement stringent cost control while securing investment for future growth [46][79] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to the entry of generics and the impact of the Inflation Reduction Act on XTANDI sales [40][49] - The company is optimistic about the growth of strategic products like PADCEV and IZERVAY, despite some setbacks [41][62] - Future sales growth is expected to significantly outpace expenses, contributing to profits [66] Other Important Information - The company has revised its peak sales forecast for IZERVAY from JPY300 billion - JPY500 billion to JPY150 billion - JPY250 billion [61] - The definition of core basis has been updated to better reflect profitability [74] Q&A Session Summary Question: Review of CSP assumptions for FY 2025 - Management confirmed that the performance goals in CSP 2021 will remain unchanged, but they will continue to analyze the numbers and scenarios [90][91] Question: Impact of J-Code approval on IZERVAY sales - Management highlighted that the permanent J-Code will simplify reimbursement procedures, expanding the customer base, and emphasized the importance of launching IZERVAY in additional markets [92][93] Question: Concerns regarding mirabegron generics - Management acknowledged the ongoing legal situation but noted that the injunction by the appeals court is temporary and its duration is unclear [95] Question: Journey towards improving core OP margin - Management indicated that growth in products like PADCEV and IZERVAY is expected to positively impact the OP margin [97][99] Question: Dividend strategy and future increases - Management expressed a commitment to stable dividend increases while being cautious about future profitability, especially with XTANDI's patent expiration approaching [102][103]