Kyowa Hakko Kirin 3Q FY18 (YE Dec'18) Results - First Glance

Asia Healthcare Analyst, Pathology Associates Limited

Dion Stéfan Büchner M.D., FCAP

Asia Healthcare Analyst

Pathology Associates Limited

Equity Bottom-Up

<p>We reiterate our “Equal-weight” rating on the stock post 1H FY18 (YE Dec-18) earnings</p><ul>
<li>KHK reported a decline in 1H FY18 sales (-2.0% to ¥1b) mainly due to a slowdown in domestic pharma (-7.6% to ¥90.8b), however overseas sales continue to grow in 1H (+15.0% to ¥43b) due to increase in tech licensing ($40m voucher from FDA on approval of Crysvita).</li>
<li>Increase in Core Net Income in 1H FY18 (+100% to ¥3b) due to a one-time gain from selling Medex share (¥13.4b) in 1Q FY18.</li>
</ul>

We reiterate our “Equal-weight” rating on the stock post 1H FY18 (YE Dec-18) earnings
KHK reported a decline in 1H FY18 sales (-2.0% to ¥1b) mainly due to a slowdown in domestic pharma (-7.6% to ¥90.8b), however overseas sales continue to grow in 1H (+15.0% to ¥43b) due to increase in tech licensing ($40m voucher from FDA on approval of Crysvita).
Increase in Core Net Income in 1H FY18 (+100% to ¥3b) due to a one-time gain from selling Medex share (¥13.4b) in 1Q FY18.


One-Time Income Resulted in Strong 1H FY18 Performance – Crysvita Is Key Driver.

Kyowa Kirin Co Ltd

One-Time Income Resulted in Strong 1H FY18 Performance – Crysvita Is Key Driver.