Chugai’s First Quarter In Line, FVE Unchanged at JPY 4,860

Narrow-moat Chugai’s first quarter was in line with expectations. After removing JPY 92 million of lump-sum settlement from Alexion related to patent infringement claims on its C5 inhibitor Ultomiris, revenue was JPY 269 million, or a 4.5% decline year on year. The top line was slightly better than our expectations, driven primarily by strong sales in Ronapreve, but this was offset by cost of sales that was 5 percentage points higher than expectation due to shifting product mix.