Shares of Daito Pharmaceutical Co.,Ltd. <4577> snapped a two-session losing streak. The advance came after the company upgraded its consolidated earnings guidance for the fiscal year ending May 2026 after the bell on the 10th, raising operating profit from \3.0 billion to \3.3 billion (up 26.0% year-on-year) and net profit from \2.3 billion to \2.5 billion (up 31.0% year-on-year), drawing cheers from investors.

Although Daito lowered its sales forecast from \52.5 billion to \51.0 billion (up 0.7% year-on-year) amid client inventory adjustments and shifts in its Chinese market sales strategy, a higher ratio of formulations in its sales mix is expected to bolster the bottom line. Furthermore, research and development expenses are projected to fall below initial estimates following a review of development plans for portfolio management and delays in bioequivalence studies, while depreciation costs are also seen coming in lower than anticipated due to accounting standard changes.

In its nine-month results (June 2025 to February 2026) released simultaneously, the company reported sales of \36.732 billion (up 0.3% year-on-year), operating profit of \2.751 billion (up 47.2% year-on-year), and net profit of \2.267 billion (up 86.2% year-on-year). While active pharmaceutical ingredients (APIs) for antiallergic drugs rose, those for hemostatic and anticoagulant drugs fell, leading to a decline in overall API sales. However, formulations, including generics (Gx) and OTC products, grew enough to offset the API shortfall.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.