ASKA Pharmaceutical Holdings Reports Q1 Revenue Drop Amid Price Adjustments and Geopolitical Risks

TOKYO, Aug 04 (Pulse News Wire) – Aska Pharmaceutical Holdings CO.,LTD. (4886.T) reported a decline in revenue for the first quarter of fiscal year 2027 due to price adjustments in domestic pharmaceutical products and adverse effects from overseas operations.

Revenue decreased to ¥17.30 billion, marking a reduction of 1.5% compared to the same period last year. Costs increased due to rising raw material prices, leading to higher selling expenses and general administrative costs. Operating profit was ¥700 million, down 51.4% year-over-year. Despite these challenges, the company maintained its forecast for operating profit at ¥6.200 billion, representing an increase of 6.3% compared to the previous year's estimate. Segment-wise, medical pharmaceutical sales declined slightly due to ongoing price adjustments and supply issues for key products in the Middle East.

Animal health sales grew by 6.1% percent driven by feed additives, although profitability was impacted by rising input costs. Overseas operations saw reduced revenues and profits due to difficulties in securing raw materials for flagship products. Key product performance showed mixed results. Thyroid drug "Chlaring" and hypertension treatment "Rifexima" performed well, while women’s health drugs such as "Droethi" faced revenue declines. The animal health division experienced growth but also suffered from lower margins due to increased procurement costs.

Looking ahead, ASKA remains cautious amid continued inflationary pressures and geopolitical risks affecting global markets.