On August 1, 2022 Astellas Pharma Inc. (TSE: 4503, President and CEO: Kenji Yasukawa, "the Company") reported the financial results for the first three months (April 1, 2022 – June 30, 2022) of the fiscal year 2022 ending March 31, 2023 (FY2022) (Press release, Astellas, AUG 1, 2022, View Source [SID1234617165]).
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1. Qualitative information on consolidated financial results for the first three months of FY2022 Business performance
Consolidated financial results (core basis) in the first three months of FY2022 are shown in the table below. While revenue increased, core operating profit and core profit decreased.
Revenue
-Sales of XTANDI for the treatment of prostate cancer and XOSPATA for the treatment of acute myeloid leukemia continued to grow.
-PADCEV for the treatment of urothelial cancer contributed to revenue growth due to significant expanding of sales in the United States and Japan as well as an increase in the number of countries in which the product was launched in Europe.
-Additionally, the expansion of sales of Betanis / Myrbetriq / BETMIGA for the treatment of overactive bladder ("OAB") and the immunosuppressant agent Prograf as well as the growth of sales of EVENITY for the treatment of osteoporosis in Japan contributed to revenue growth.
Core operating profit / Core profit-Gross profit increased by 11.0% year-on-year to ¥292.9 billion. The cost-torevenue ratio increased by 4.2 percentage points year-on-year to 23.3%, mainly due to the foreign exchange rate impact from the elimination of unrealized profit in intra-group transactions (increase of ¥12.3 billion year-on-year).-Selling, general and administrative expenses increased by 11.9% year-on-year to ¥153.4 billion.
Although expenses decreased as a result of global optimization of personnel aligned with transformation of product portfolio (decrease of approximately ¥3.0 billion year-on-year) and reduction of mature products-related costs (decrease of approximately ¥2.0 billion year-on-year), the total amount increased due to foreign exchange rate impact (increase of ¥16.7 billion year-onyear) and an increase in investment for new product launch readiness (increase of approximately ¥2.0 billion year-on-year). Selling, general and administrative expenses, excluding co-promotion fees of XTANDI in the United States, increased by 7.4% year-on-year to ¥110.3 billion.
-Research and development (R&D) expenses increased by 26.9% year-on-year to ¥74.0 billion. The total amount increased due to foreign exchange rate impact (increase of ¥7.5 billion year-on-year) in addition to one-time expenses recorded during this period, which was included in the full-year forecast.-Amortisation of intangible assets increased by 80.2% year-on-year to ¥10.7 billion.As a result of the above, core operating profit decreased by 12.0% year-on-year to ¥55.3 billion, and core profit decreased by 6.9% year-on-year to ¥45.8 billion.