Shionogi merges subsidiary, raises full-year forecast on strong royalty income

Shionogi & Co., Ltd. announced an absorption-type merger with its wholly-owned subsidiary, Shionogi Pharma Co., Ltd., effective April 1, 2027. This merger aims to strengthen functional collaborations across production, pharmaceutical technology development, sales, and marketing, building a more flexible and resilient supply system. As Shionogi Pharma is a wholly-owned subsidiary, the impact on consolidated financial results is expected to be minimal.

In conjunction with this, Shionogi has revised its FY2025 financial forecasts upward. The company now expects to achieve ¥500.0 bn in revenue, ¥185.0 bn in operating profit, and ¥232.0 bn in profit before tax for the fiscal year ending March 31, 2026. This revision is driven by an increase in royalty income and overseas subsidiary sales, despite a downward revision in domestic prescription drug sales.

Shionogi's Q2 FY22025 results show revenue of ¥213.0 bn and operating profit of ¥74.8 bn. Profit before tax increased to ¥98.4 bn, and profit attributable to owners of the parent reached ¥83.5 bn. The company maintains a strong market share in oral antivirals and is expanding its HIV and QOL disease portfolios, including the full acquisition of Torii Pharmaceutical Co., Ltd. and advancement of key pipeline assets.