Seikagaku reports significant drop in H1 fiscal 2025 earnings

Seikagaku Corporation reported a significant downturn in its financial performance for the first six months of fiscal year 2025, ending September 30, 2025. Net sales decreased by 11.4% to JPY17,910 million, compared to JPY20,210 million in the same period last year. This led to an operating loss of JPY557 million, a sharp reversal from the JPY2,537 million operating income reported in H1 fiscal 2024. Ordinary income plummeted 77.4% to JPY531 million, down from JPY2,354 million, largely due to the sale of investment securities and reduced royalty income.

Net income attributable to owners of parent also saw a steep decline of 88.1%, falling to JPY229 million from JPY1,931 million in the prior year, resulting in diluted net income per share of JPY4.21. The company's forecast for the full fiscal year 2025 remains unchanged, projecting net sales of JPY35,600 million and net income attributable to owners of parent of JPY1,350 million.

The decline in sales was primarily attributed to a steep decline in royalty income, despite an 8.0% increase in domestic pharmaceutical sales to JPY5,832 million. Overseas pharmaceutical sales, however, decreased by 7.1% to JPY4,417 million. Research and development expenses for the period totaled JPY3,027 million, representing 16.9% of net sales, with ongoing clinical studies for Gel-One and a marketing approval application for SI-449 in Japan.