In today’s briefing:
- Jcr Pharmaceuticals (4552 JP): Mainstay Drug Revenue Declining; High R&D Cost Worsens Profitability
- Change in Attitude of Domestic Institutional Investors Is Key to Approval of Shareholder Proposal
Jcr Pharmaceuticals (4552 JP): Mainstay Drug Revenue Declining; High R&D Cost Worsens Profitability
- Jcr Pharmaceuticals (4552 JP)‘s cash cow Growject, recombinant human growth hormone, is reporting decelerating revenue due to insurance price revision. The drug is also facing competition.
- JCR’s latest marketed product Izcargo is on a strong growth trajectory. However, the drug is not big enough to compensate for the revenue loss from Growject.
- The company’s bottom-line is under pressure due to elevated R&D expenses. Cash position has also deteriorated. No near-term product launch is anticipated.
Change in Attitude of Domestic Institutional Investors Is Key to Approval of Shareholder Proposal
- Without sufficient sales growth and profitability, including profit margins and ROE, it is understandable that shareholders will demand greater shareholder returns in order to secure a return on their investment.
- Since Zojirushi’s foreign shareholder ratio is 19.9%, it was expected that shareholder proposals including takeover defense measures would likely be rejected at the general shareholders meeting.
- The likelihood of passage by a company that have low foreign ownership ratio is unlikely to increase without significant change in the attitude of domestic institutional investors toward shareholder proposals.
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