On October 31, 2022 Astellas Pharma Inc. (TSE: 4503, President and CEO: Kenji Yasukawa, "the Company") reported the financial results for the first six months (April 1, 2022 – September 30, 2022) of the fiscal year 2022 ending March 31, 2023 (FY2022) (Press release, Astellas, OCT 31, 2022, View Source [SID1234622613]).
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1. Qualitative information on consolidated financial results for the first six months of FY2022 (1) Business performance
Revenue, core operating profit and core profit increased across the board.Revenue-Main products XTANDI for the treatment of prostate cancer, XOSPATA for the treatment of acute myeloid leukemia and PADCEV for the treatment of urothelial cancer showed steady growth, contributing to revenue growth.-The growth of sales of EVENITY for the treatment of osteoporosis in Japan also contributed to revenue growth. In addition to the above, the rapid depreciation of the yen had a favorable foreign exchange impact on our business, revenue in the first six months of FY2022 increased by 17.0% compared to those in the corresponding period of the previous fiscal year ("year-onyear") to ¥762.2 billion.
Core operating profit / Core profit-Gross profit increased by 15.9% year-on-year to ¥610.5 billion. The cost-torevenue ratio increased by 0.8 percentage points year-on-year to 19.9%, mainly due to changes in product mix.-Selling, general and administrative expenses increased by 13.8% year-on-year to ¥308.0 billion. Although expenses decreased as a result of global optimization of commercial-related personnel aligned with transformation of product portfolio (decrease of approximately ¥6.0 billion year-on-year) and reduction of mature products-related costs (decrease of approximately ¥4.0 billion year-on-year), the total amount increased due to an increase in investment for new product launch readiness (increase of approximately ¥4.0 billion year-on-year) and foreign exchange rate impact (increase of ¥40.2 billion year-on-year). Excluding the foreign exchange rate impact, the total amount decreased on a year-on-year basis.
Selling, general and administrative expenses, excluding co-promotion fees of XTANDI in the United States, increased by 9.5% year-on-year to ¥218.3 billion.-Research and development (R&D) expenses increased by 16.9% year-on-year to ¥139.2 billion. In addition to the foreign exchange rate impact (increase of ¥15.1 billion year-on-year), the total amount increased due to the recording of expenses (¥13.5 billion) associated with the priority review voucher used for fezolinetant in the first three months of FY2022.-Amortisation of intangible assets increased by 61.3% year-on-year to ¥20.0 billion. As a result of the above, core operating profit increased by 16.0% year-on-year to ¥145.4 billion, and core profit increased by 21.5% year-on-year to ¥120.0 billion.
Impact of exchange rate on financial results The exchange rates for the yen in the first six months of FY2022 are shown in the table below. The resulting impacts were a ¥84.3 billion increase in revenue and a ¥16.0 billion increase in core operating profit compared with if the exchange rates of the corresponding period of the previous fiscal year were applied.