Company Reports

Chugai was founded in 1925 and developed into one of Japan's leading biotech companies in the 1990s, launching Epogin (1990) and Neutrogin (1991). In 2002, Chugai merged with Roche’s small-molecule Japan affiliate, Nippon Roche, and Roche became the parent company, now owning approximately 60% of the shares.

Chugai reported second-quarter revenue of JPY 342 billion, or 18% year-on-year growth, and core operating profit of JPY 166 billion, or 25% growth. Year to date, revenue and core operating profit figures represent 49% progress on management's full-year guidance targets.

First-quarter revenue was JPY 322 billion, up 11% year on year, and operating profit was JPY 159 billion, up 16%. These figures represent 24% progress on full-year guidance targets.

Chugai was founded in 1925 and developed into one of Japan's leading biotech companies in the 1990s, launching Epogin (1990) and Neutrogin (1991). In 2002, Chugai merged with Roche’s small-molecule Japan affiliate, Nippon Roche, and Roche became the parent company, now owning approximately 60% of the shares.

Chugai Pharmaceutical reported fourth-quarter revenue of JPY 346 billion, up 15% year on year, and operating profit of JPY 169.5 billion, up 37%. Guidance for 2026 was JPY 1.345 trillion for top-line revenue, or 7% year-on-year growth, and JPY 295 core earnings per share, or 8% growth.

Chugai was founded in 1925 and developed into one of Japan's leading biotech companies in the 1990s, launching Epogin (1990) and Neutrogin (1991). In 2002, Chugai merged with Roche’s small-molecule Japan affiliate, Nippon Roche, and Roche became the parent company, now owning approximately 60% of the shares.

Chugai Pharmaceutical reported third-quarter revenue of JPY 333 billion, up 8% year on year, and operating profit of JPY 156.5 billion, down 2%. It also announced a small deal to acquire Renalys, which grants it the commercial rights in Japan for sparsentan, a treatment for IgA nephropathy.

Japanese drug firm Chugai Pharmaceutical has established competitive advantages due to its alliance with majority shareholder Roche as well as its internal research and development engine. While current top products could see new branded and biosimilar threats over the next several years, the combined Roche-Chugai pipeline is robust and promising.

Eli Lilly reported topline results for Attain-1, one of two phase 3 trials studying orforglipron, a Chugai-discovered drug, as a treatment for obese or overweight patients. Although it met its primary endpoint, the headline efficacy numbers are lower than expectations.

Revenue for the quarter was JPY 290 billion and operating profit was JPY 136.7 billion, which are 8% and 14% year-on-year declines.

Chugai generated revenue of JPY 288.5 billion and operating profit of JPY 139.5 billion, and management left its full-year guidance unchanged. These figures represent 24% and 25% progress on full-year guidance, respectively.

Orforglipron reported its first phase 3 results from the Achieve-1 study for diabetic patients. After 40 weeks of once-daily dosing, the drug produced midteens nausea/vomiting rates, no signals of liver toxicity, and 6.3% placebo-adjusted weight loss at the highest dose of 36 mg.

Japanese drug firm Chugai Pharmaceutical has established competitive advantages due to its alliance with majority shareholder Roche as well as its internal research and development engine. While current top products could see new branded and biosimilar threats over the next several years, the combined Roche-Chugai pipeline is robust and promising.

Japanese drug firm Chugai Pharmaceutical has established competitive advantages due to its alliance with majority shareholder Roche as well as its internal research and development engine. While current top products could see new branded and biosimilar threats over the next several years, the combined Roche-Chugai pipeline is robust and promising.

Narrow-moat Chugai's fourth-quarter earnings were in line with our expectations. Revenue for the quarter was JPY 302 billion, or 10% year-on- year growth, and core operating profit margin was 42.9%. The company issued 2025 guidance of low-single-digit revenue growth and flat operating profit margins, which is within expectations. We maintain our fair value estimate of JPY 5,900 and view shares as slightly expensive. Although the company's key pipeline assets are not yet derisked, this year has significant readouts that, if positive, have the potential to improve our outlook on the company.

Narrow-moat Chugai's third-quarter earnings exceeded our expectations due to strong overseas sales of immunology drug Actemra and income from disposal of product rights. Not surprisingly, the company raised its full-year revenue guidance to JPY 1.15 trillion from JPY 1.07 trillion. We've increased our fair value estimate to JPY 5,900 per share from JPY 5,200, due to a more optimistic outlook on long-term operating profit margins as well as incremental increases in our assumptions for Chugai’s pipeline assets. Although we hold Chugai’s drug development platform in high regard, the company’s key pipeline assets are not yet derisked.

Japanese drug firm Chugai Pharmaceutical has established competitive advantages due to its alliance with majority shareholder Roche as well as its internal research and development engine. While current top products could see new branded and biosimilar threats over the next several years, the combined Roche-Chugai pipeline is robust and promising.

Narrow-moat Chugai's second-quarter earnings performed well above our expectations due to excellent overseas sales of Hemlibra and Actemra to Roche, putting it on track to exceed its full-year target. We maintain our fair value estimate of JPY 5,200 per share. Although we hold Chugai’s drug development platform in very high regard, we want to see more pipeline progress before we feel comfortable with the current market valuation.

Japanese drug firm Chugai Pharmaceutical has established competitive advantages due to its alliance with majority shareholder Roche as well as its internal research and development engine. While current top products could see new branded and biosimilar threats over the next several years, the combined Roche-Chugai pipeline is robust and promising.

Narrow-moat Chugai's first-quarter earnings were slightly below our expectations mostly due to lower-than-expected royalty income. However, this is still well within the usual quarterly variability, and overall we think the company remains on track to meet its full year guidance. We maintain our fair value estimate of JPY 5,200 per share. Although the market price is close to our fair value estimate, given our positive view of Chugai's pipeline, we think this stock is worth watching closely and potentially buying on dips.