Innovation to Help Maintain HIV Franchise Market Share and Weather Harsh Domestic Market Conditions

Astellas FY17 Results and FY18e Guidance – No Major Surprise

Asia Healthcare Analyst, Pathology Associates Limited

Dion Stéfan Büchner M.D., FCAP

Asia Healthcare Analyst

Pathology Associates Limited

Equity Bottom-Up

<p><strong>Key highlights</strong></p><ul>
<li>1H FY18 gross margins improved significantly to 85.3% from ~77% for the same period last year, primarily driven by <ul>
<li>24% increase in HIV franchisee royalty to ~¥57b and</li>
<li>~50% increase in other royalty to ~¥24b, driven by XOFLUZA related milestones from Roche</li>
</ul>
</li>
<li>Strategic investments led increase in R&amp;D expenses (+28.2% to ¥~39b) capped core operating profit growth to ~3% (or ¥58.8b) and core EPS growth to 12% (or ¥180 / share)</li>
<li>The company revised FY18 sales guidance by ~+2% to ~¥354b on the back of visibility on further Xofluza related income from Roche (as US approval on October 24, 2018 came in ahead of schedule)</li>
<li>CFO increased ~60% y-o-y to ~¥68b</li>
</ul>

Key highlights
1H FY18 gross margins improved significantly to 85.3% from ~77% for the same period last year, primarily driven by 
24% increase in HIV franchisee royalty to ~¥57b and
~50% increase in other royalty to ~¥24b, driven by XOFLUZA related milestones from Roche


Strategic investments led increase in R&amp;D expenses (+28.2% to ¥~39b) capped core operating profit growth to ~3% (or ¥58.8b) and core EPS growth to 12% (or ¥180 / share)
The company revised FY18 sales guidance by ~+2% to ~¥354b on the back of visibility on further Xofluza related income from Roche (as US approval on October 24, 2018 came in ahead of schedule)
CFO increased ~60% y-o-y to ~¥68b


Shionogi 1H FY18 (YE Mar'19) Results - First Glance

Shionogi & Co

Shionogi 1H FY18 (YE Mar'19) Results - First Glance