Japanese pharmaceutical companies see diverging earnings

The Japanese pharmaceutical industry is experiencing significant polarization in financial performance. While several major companies reported strong earnings, others faced substantial losses.

Shionogi & Co., Ltd. saw its consolidated net profit increase 2.5 times year-on-year, and Kyowa Kirin reported an 88.6% increase in net profit. Eisai also recorded a 26% rise in net profit, driven largely by global sales of its Alzheimer’s treatment, Leqembi. These successes are attributed to growth in global specialty medicine markets and favorable foreign exchange effects from a weak yen.

In contrast, Takeda Pharmaceutical Company Limited reported a consolidated net loss of 152.3 billion yen. The industry faces several structural risks, including the ‘patent cliff’—where major drugs lose patent protection—and frequent domestic drug price revisions in Japan. Additionally, the shift toward complex biologics and gene therapies is driving up research and development costs.