ALPMF - Astellas Pharma Inc. (ALPMF) Q4 2023 Earnings Call Transcript

2024-04-26 18:00:03 ET

Astellas Pharma Inc. (ALPMF)

Q4 2023 Results Conference Call

April 25, 2024 04:00 AM ET

Company Participants

Hiromitsu Ikeda - Chief Communications and Investor Relations Officer

Naoki Okamura - President and Chief Executive Office

Yoshitsugu Shitaka - Chief Scientific Officer

Tadaaki Taniguchi - Chief Medical Officer

Claus Zieler - Chief Commercial Officer

Atsushi Kitamura - Chief Financial Officer

Conference Call Participants

Hidemaru Yamaguchi - Citigroup Securities

Shinichiro Muraoka - Morgan Stanley MUFJ Securities

Akinori Ueda - Goldman Sachs Securities

Kasumi Haruta - UBS Securities

Kazuaki Hashiguchi - Daiwa Securities

Seiji Wakao - JPMorgan Securities

Miki Sogi - AllianceBernstein Japan Ltd

Shinya Tsuzuki - Mizuho Securities

Presentation

Hiromitsu Ikeda

Thank you very much for joining our FY 2023 earnings call, despite your busy schedule. I'm Chief Communications and IR Officer, Ikeda. I would like to serve as the moderator for today. Today, I will make a presentation that is followed by a Q&A session. The material is available on our website. In line with that, we are going to give you the presentation.

Including, in the Q&A, the simultaneous translation of Japanese and English is provided. The accuracy of the translation is not going to be guaranteed by us. As for the language from the Zoom webinar screen, on the menu you can find the language. When you select the original language, in the case you can listen to it without using the translation service.

And for the material or presentation and answers and the statement by representatives for the Company in the Q&A includes forward-looking statements based on assumptions and beliefs in light of the information currently available to manage and subject to significant risks and uncertainties.

Actual financial results may differ materially depending on a number of factors. They contain information on pharmaceuticals, including compounds under development, but this information is not intended to make any presentations or advertisement regarding the efficacy or effectiveness of these preparations.

The participants for here today is CEO -- excuse me, Representative Director, President and CEO, Naoki Okamura; CScO, Chief Scientific Officer, Yoshitsugu Shitaka; Chief Medical Officer, CMO, Tadaaki Taniguchi; Chief Commercial Officer, CCO, Claus Zieler; Chief Financial Officer, CFO, Atsushi Kitamura. We have five here as representatives from the Company.

Now Okamura-san, please start your presentation.

Naoki Okamura

Hello, everyone. I'm Naoki Okamura from Astellas Pharma Inc. Thank you very much for joining our FY 2023 financial results announcement meeting out of your very busy schedule today. This is a cautionary statement regarding forward-looking information. As this was explained by Ikeda earlier, I'm not going to read this page. Page 3 is the agenda for today. Starting from the next page, I will explain these topics in this order. On Page 4, I will give you an overview of FY 2023 financial results.

Revenue increased year-on-year and exceeded our full year forecast revised in the third quarter. XTANDI sales increased by about JPY90 billion year-on-year, contributing to the achievement of our full year forecast. Sales of PADCEV, XOSPATA, VEOZAH, and IZERVAY combined, increased by about JPY70 billion year-on-year, contributing greatly to sales expansion as growth drivers.

SG&A costs increased year-on-year, mainly due to the impact of the Iveric Bio acquisition and investments in growth drivers. We achieved efficient cost management through timely assessment of resources. R&D expenditure was on track. Core operating profit decreased year-on-year, mainly due to the impact of Iveric Bio acquisition. On the other hand, core operating profit exceeded the full year forecast revised in the third quarter. On Page 5, I will explain FY 2023 financial results.

Revenue increased to JPY1,603.7 billion, up 5.6% year-on-year. We achieved 102.7% of a full year forecast. Core operating profit was JPY184.6 billion, down by 35.6% year-on-year. We achieved 112.6% of our full year forecast. You can see the ForEx impact on the right-hand side of the table. There was a positive impact on revenue by JPY96.3 billion and on core operating profit by JPY19.1 billion. The bottom half of this page shows the full basis results....

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