Buy Or Sell Opportunity • Jun 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to JP¥3,815. The fair value is estimated to be JP¥4,804, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has declined by 6.4%. For the next 3 years, revenue is forecast to grow by 2.2% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Major Estimate Revision • Jun 17
Consensus EPS estimates increase by 54% The consensus outlook for earnings per share (EPS) in fiscal year 2027 has improved. 2027 revenue forecast increased from JP¥76.5b to JP¥79.6b. EPS estimate increased from JP¥55.42 to JP¥85.09 per share. Net income forecast to grow 50% next year vs 3.3% growth forecast for Pharmaceuticals industry in Japan. Consensus price target broadly unchanged at JP¥4,350. Share price was steady at JP¥3,830 over the past week. Buy Or Sell Opportunity • Jun 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to JP¥3,790. The fair value is estimated to be JP¥4,804, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has declined by 6.4%. For the next 3 years, revenue is forecast to grow by 2.4% per annum. Earnings are also forecast to grow by 20% per annum over the same time period. Annonce • May 30
Kaken Pharmaceutical Co., Ltd. to Report Q1, 2027 Results on Aug 07, 2026 Kaken Pharmaceutical Co., Ltd. announced that they will report Q1, 2027 results on Aug 07, 2026 Reported Earnings • May 15
Full year 2026 earnings: EPS in line with analyst expectations despite revenue beat Full year 2026 results: EPS: JP¥56.55 (down from JP¥365 in FY 2025). Revenue: JP¥76.9b (down 18% from FY 2025). Net income: JP¥2.14b (down 85% from FY 2025). Profit margin: 2.8% (down from 15% in FY 2025). Revenue exceeded analyst estimates by 5.5%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Annonce • May 13
Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 26, 2026 Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 26, 2026. Annonce • Apr 01
Kaken Pharmaceutical Co., Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Kaken Pharmaceutical Co., Ltd. announced that they will report fiscal year 2026 results on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥95.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.4%). Reported Earnings • Feb 07
Third quarter 2026 earnings: EPS and revenues miss analyst expectations Third quarter 2026 results: EPS: JP¥10.72 (down from JP¥129 in 3Q 2025). Revenue: JP¥18.3b (down 26% from 3Q 2025). Net income: JP¥406.0m (down 92% from 3Q 2025). Profit margin: 2.2% (down from 20% in 3Q 2025). Revenue missed analyst estimates by 5.7%. Earnings per share (EPS) also missed analyst estimates by 57%. Revenue is expected to decline by 2.0% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 3.9%. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 5% per year. Annonce • Dec 19
Kaken Pharmaceutical Co., Ltd. to Report Q3, 2026 Results on Feb 06, 2026 Kaken Pharmaceutical Co., Ltd. announced that they will report Q3, 2026 results on Feb 06, 2026 Declared Dividend • Nov 29
First half dividend of JP¥95.00 announced Shareholders will receive a dividend of JP¥95.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 4.9%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is not covered by earnings (440% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 389% to bring the payout ratio under control. EPS is expected to grow by 34% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Nov 12
Second quarter 2026 earnings released: EPS: JP¥19.04 (vs JP¥331 in 2Q 2025) Second quarter 2026 results: EPS: JP¥19.04 (down from JP¥331 in 2Q 2025). Revenue: JP¥20.5b (down 38% from 2Q 2025). Net income: JP¥721.0m (down 94% from 2Q 2025). Profit margin: 3.5% (down from 38% in 2Q 2025). Revenue is expected to decline by 3.6% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 3.8%. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Annonce • Sep 29
Kaken Pharmaceutical Co., Ltd. Revises Consolidated Financial Forecast for Fiscal Year Ending March 31, 2026 Kaken Pharmaceutical Co., Ltd. revised consolidated financial forecast for fiscal year ending March 31, 2026. For the period, the company expects net sales of JPY 86,300 million compared to previous guidance of JPY 88,000 million, operating profit of JPY 2,100 million compared to previous guidance of JPY 5,200 million and profit attributable to owners of parent company of JPY 2,300 compared to previous guidance of JPY 3,400 million or basic earnings per share of JPY 60.74 per share compared to previous guidance of JPY 88.53. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥95.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 01 December 2025. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 4.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.7%). Annonce • Sep 11
Kaken Pharmaceutical Co., Ltd. to Report Q2, 2026 Results on Nov 10, 2025 Kaken Pharmaceutical Co., Ltd. announced that they will report Q2, 2026 results on Nov 10, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥7.12 (vs JP¥46.32 in 1Q 2025) First quarter 2026 results: EPS: JP¥7.12 (down from JP¥46.32 in 1Q 2025). Revenue: JP¥18.9b (up 3.4% from 1Q 2025). Net income: JP¥271.0m (down 85% from 1Q 2025). Profit margin: 1.4% (down from 9.6% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 6.3% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 3.9%. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Declared Dividend • Jul 09
Final dividend of JP¥95.00 announced Shareholders will receive a dividend of JP¥95.00. Ex-date: 29th September 2025 Payment date: 1st December 2025 Dividend yield will be 4.5%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (28% earnings payout ratio) and cash flows (28% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 83% over the next 3 years. Since a fall of 69% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Annonce • May 31
Kaken Pharmaceutical Co., Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Kaken Pharmaceutical Co., Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 Major Estimate Revision • May 29
Consensus revenue estimates increase by 19%, EPS downgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from JP¥74.2b to JP¥88.3b. EPS estimate fell from JP¥128 to JP¥80.45. Net income forecast to shrink 78% next year vs 0.2% growth forecast for Pharmaceuticals industry in Japan . Consensus price target down from JP¥4,850 to JP¥4,600. Share price rose 2.0% to JP¥3,813 over the past week. Reported Earnings • May 13
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥365 (up from JP¥213 in FY 2024). Revenue: JP¥94.0b (up 31% from FY 2024). Net income: JP¥13.9b (up 74% from FY 2024). Profit margin: 15% (up from 11% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.8%. Earnings per share (EPS) missed analyst estimates by 6.5%. Revenue is expected to decline by 8.0% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 3.6%. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Annonce • Apr 11
Kaken Pharmaceutical Co., Ltd. Revises Consolidated Earnings Forecast for Fiscal Year Ended March 31, 2025 Kaken Pharmaceutical Co., Ltd. revised consolidated earnings forecast for fiscal year ended March 31, 2025. For the year, the company expected net sales of JPY 94,000 million compared to previous forecast of JPY 88,500 million; Operating profit of JPY 20,800 million compared to previous forecast of JPY 20,800 million; Profit attributable to owners of the parent of JPY 14,000 million compared to previous forecast of JPY 14,200 million and Basic earnings per share of JPY 364.55 compared to previous forecast of JPY 374.97. The forecast for net sales has been revised upward from the previously announced forecast to reflect the receipt of an upfront payment as described in the press release KAKEN Entered into a License Agreement for STAT6 Inhibitor announced on December 26, 2024, and other factors. Operating profit, ordinary profit, and profit attributable to owners of the parent have been partially revised to reflect the upfront payment as described in the press release Alumis and Kaken Pharmaceutical Announce Collaboration and Licensing Agreement for ESK-001 in Dermatology in Japan announced on March 25, 2025, as well as the expenses described in the press release Notice of Completion of Acquisition of Aadi Subsidiaries, Inc, U.S.A. announced on March 27, 2025. Annonce • Mar 26
Kaken Pharmaceutical Co., Ltd. (TSE:4521) completed the acquisition of Aadi Subsidiary, Inc. from Aadi Bioscience, Inc. (NasdaqCM:AADI) for $102.4 million. Kaken Pharmaceutical Co., Ltd. (TSE:4521) entered into a stock purchase agreement to acquire Aadi Subsidiary, Inc. from Aadi Bioscience, Inc. (NasdaqCM:AADI) for $100 million on December 19, 2024. The purchase price is subject to customary adjustments. The board of directors of Aadi approved and recommend that Aadi’s stockholders vote in favor of, and authorize the approval of, the purchase agreement and stock purchase. Completion of the stock purchase is subject to customary closing conditions, including all consents and approvals required under certain regulatory laws having been obtained and the absence of any law or order preventing, materially restraining or materially impairing the consummation of the stock purchase. Completion of the Stock Purchase is also subject, with certain exception, to the completion of certain internal pre-closing restructuring transaction. In case of termination of transaction, Aadi Bioscience, Inc. will pay a termination fee of $3.50 million. The transaction is expected to close in the first half of 2025. On February 28, 2025, shareholders of Aadi Bioscience approved the transaction.
Matt Carter and David A. Lipkin of McDermott Will & Emery LLP acted as legal advisor to Kaken Pharmaceutical Co., Ltd. Dan Koeppen, Robert L. Wernli, Jr., Ethan Lutske and Jack Hamilton of Wilson Sonsini Goodrich & Rosati acted as legal advisor and Leerink Partners LLC acted as Financial advisor to Aadi Bioscience, Inc.
Kaken Pharmaceutical Co., Ltd. (TSE:4521) completed the acquisition of Aadi Subsidiary, Inc. from Aadi Bioscience, Inc. (NasdaqCM:AADI) for $102.4 million on March 25, 2025. Annonce • Mar 25
Kaken Pharmaceutical Co., Ltd. to Report Fiscal Year 2025 Results on May 12, 2025 Kaken Pharmaceutical Co., Ltd. announced that they will report fiscal year 2025 results on May 12, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Annonce • Feb 26
Kaken Pharmaceutical Co., Ltd. (TSE:4521) announces an Equity Buyback for 1,800,000 shares, representing 4.53% for ¥9,000 million. Kaken Pharmaceutical Co., Ltd. (TSE:4521) announces a share repurchase program. Under the program, the company will repurchase 1,800,000 shares, representing 4.53% of its share capital, for ¥9,000 million. The purpose of the program is to strengthen shareholder returns and improve capital efficiency, as well as to address the dilution of shares resulting from the disposal of treasury stock. The program will run until September 30, 2025. As of January 31, 2025, the company had 39,758,792 shares in issue (excluding treasury stock) and 6,180,938 shares of treasury stock. Reported Earnings • Feb 07
Third quarter 2025 earnings released: EPS: JP¥129 (vs JP¥68.84 in 3Q 2024) Third quarter 2025 results: EPS: JP¥129 (up from JP¥68.84 in 3Q 2024). Revenue: JP¥24.6b (up 33% from 3Q 2024). Net income: JP¥4.89b (up 88% from 3Q 2024). Profit margin: 20% (up from 14% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is expected to decline by 10% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.2%. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Annonce • Dec 22
Kaken Pharmaceutical Co., Ltd. (TSE:4521) agreed to acquire Aadi Subsidiary, Inc. from Aadi Bioscience, Inc. (NasdaqCM:AADI) for $100 million. Kaken Pharmaceutical Co., Ltd. (TSE:4521) agreed to acquire Aadi Subsidiary, Inc. from Aadi Bioscience, Inc. (NasdaqCM:AADI) for $100 million on December 19, 2024. Completion of the Stock Purchase is subject to customary closing conditions, including the approval of the Purchase Agreement and the Stock Purchase by the holders of a majority of the outstanding shares of Aadi’s capital stock entitled to vote to approve the Purchase Agreement and Stock Purchase, all consents and approvals required under certain regulatory laws having been obtained and the absence of any law or order preventing, materially restraining or materially impairing the consummation of the Stock Purchase. Completion of the Stock Purchase is also subject, with certain exception, to the completion of certain internal pre-closing restructuring transaction. In case of termination of transaction, Aadi Bioscience, Inc. will pay a termination fee of $3.50 million. The transaction is expected to close in the first half of 2025. Matt Carter and David A. Lipkin of McDermott Will & Emery LLP acted as legal advisor to Kaken Pharmaceutical Co., Ltd. Dan Koeppen, Robert L. Wernli, Jr., Ethan Lutske and Jack Hamilton of Wilson Sonsini Goodrich & Rosati acted as legal advisor to Declared Dividend • Nov 30
First half dividend of JP¥75.00 announced Shareholders will receive a dividend of JP¥75.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 4.4%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has increased by an average of 4.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 92% over the next 3 years. Since a fall of 65% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Annonce • Nov 30
Kaken Pharmaceutical Co., Ltd. to Report Q3, 2025 Results on Feb 06, 2025 Kaken Pharmaceutical Co., Ltd. announced that they will report Q3, 2025 results on Feb 06, 2025 Major Estimate Revision • Nov 15
Consensus EPS estimates increase by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥83.1b to JP¥87.8b. EPS estimate increased from JP¥354 to JP¥391 per share. Net income forecast to shrink 50% next year vs 0.4% decline forecast for Pharmaceuticals industry in Japan. Consensus price target of JP¥3,600 unchanged from last update. Share price rose 13% to JP¥4,369 over the past week. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥331 (vs JP¥41.29 in 2Q 2024) Second quarter 2025 results: EPS: JP¥331 (up from JP¥41.29 in 2Q 2024). Revenue: JP¥33.1b (up 84% from 2Q 2024). Net income: JP¥12.5b (up JP¥11.0b from 2Q 2024). Profit margin: 38% (up from 8.6% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is expected to decline by 8.9% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.5%. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 3% per year. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥115 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is on the higher end at 78%, and the cash payout ratio is above 100%. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.3%). Annonce • Sep 03
Kaken Pharmaceutical Co., Ltd. to Report Q2, 2025 Results on Nov 08, 2024 Kaken Pharmaceutical Co., Ltd. announced that they will report Q2, 2025 results on Nov 08, 2024 Major Estimate Revision • Jul 12
Consensus revenue estimates increase by 18% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥70.2b to JP¥83.1b. EPS estimate increased from JP¥172 to JP¥354 per share. Net income forecast to grow 67% next year vs 0.1% decline forecast for Pharmaceuticals industry in Japan. Consensus price target up from JP¥3,500 to JP¥3,600. Share price rose 3.3% to JP¥4,058 over the past week. Buy Or Sell Opportunity • Jul 11
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 17% to JP¥4,012. The fair value is estimated to be JP¥3,330, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 37%. For the next 3 years, revenue is forecast to decline by 6.5% per annum. Earnings are also forecast to decline by 48% per annum over the same time period. Annonce • Jun 26
Kaken Pharmaceutical Co., Ltd. to Report Q1, 2025 Results on Aug 07, 2024 Kaken Pharmaceutical Co., Ltd. announced that they will report Q1, 2025 results on Aug 07, 2024 Reported Earnings • May 16
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥213 (up from JP¥145 in FY 2023). Revenue: JP¥72.0b (down 1.3% from FY 2023). Net income: JP¥8.03b (up 48% from FY 2023). Profit margin: 11% (up from 7.5% in FY 2023). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.5%. Revenue is expected to decline by 6.5% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.5%. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Annonce • May 16
Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 27, 2024 Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.3%). Annonce • Mar 03
Kaken Pharmaceutical Co., Ltd. to Report Q4, 2024 Results on May 09, 2024 Kaken Pharmaceutical Co., Ltd. announced that they will report Q4, 2024 results on May 09, 2024 Reported Earnings • Feb 08
Third quarter 2024 earnings released: EPS: JP¥68.84 (vs JP¥85.00 in 3Q 2023) Third quarter 2024 results: EPS: JP¥68.84 (down from JP¥85.00 in 3Q 2023). Revenue: JP¥18.5b (down 1.3% from 3Q 2023). Net income: JP¥2.61b (down 18% from 3Q 2023). Profit margin: 14% (down from 17% in 3Q 2023). Revenue is expected to decline by 6.1% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Annonce • Dec 08
Kaken Pharmaceutical Co., Ltd. to Report Q3, 2024 Results on Feb 06, 2024 Kaken Pharmaceutical Co., Ltd. announced that they will report Q3, 2024 results on Feb 06, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥41.28 (vs JP¥81.46 in 2Q 2023) Second quarter 2024 results: EPS: JP¥41.28 (down from JP¥81.46 in 2Q 2023). Revenue: JP¥18.0b (down 3.2% from 2Q 2023). Net income: JP¥1.56b (down 49% from 2Q 2023). Profit margin: 8.6% (down from 16% in 2Q 2023). Revenue is expected to decline by 5.9% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 3.5%. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥75.00 per share at 4.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 30 November 2023. The company is paying out more than 100% of its profits and is paying out 80% of its cash flow. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.2%). Annonce • Sep 19
Kaken Pharmaceutical Co., Ltd.(TSE:4521) dropped from FTSE All-World Index (USD) Kaken Pharmaceutical Co., Ltd.(TSE:4521) dropped from FTSE All-World Index (USD) Annonce • Aug 30
Kaken Pharmaceutical Co., Ltd. to Report Q2, 2024 Results on Nov 08, 2023 Kaken Pharmaceutical Co., Ltd. announced that they will report Q2, 2024 results on Nov 08, 2023 Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥66.98 (vs JP¥76.89 in 1Q 2023) First quarter 2024 results: EPS: JP¥66.98 (down from JP¥76.89 in 1Q 2023). Revenue: JP¥18.2b (flat on 1Q 2023). Net income: JP¥2.51b (down 14% from 1Q 2023). Profit margin: 14% (down from 16% in 1Q 2023). Revenue is expected to decline by 5.7% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 3.9%. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. New Risk • Jul 16
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 104% Dividend yield: 4.3% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 30% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (104% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.5% net profit margin). Major Estimate Revision • Jun 03
Consensus EPS estimates fall by 26%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥69.6b to JP¥72.7b. EPS estimate fell from JP¥267 to JP¥198 per share. Net income forecast to grow 40% next year vs 9.7% growth forecast for Pharmaceuticals industry in Japan. Consensus price target up from JP¥3,200 to JP¥3,500. Share price was steady at JP¥3,585 over the past week. Annonce • May 28
Kaken Pharmaceutical Co., Ltd. to Report Q1, 2024 Results on Aug 04, 2023 Kaken Pharmaceutical Co., Ltd. announced that they will report Q1, 2024 results on Aug 04, 2023 Annonce • May 12
Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 29, 2023 Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 29, 2023. Reported Earnings • May 12
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥145 (down from JP¥251 in FY 2022). Revenue: JP¥73.0b (down 4.0% from FY 2022). Net income: JP¥5.44b (down 43% from FY 2022). Profit margin: 7.5% (down from 13% in FY 2022). Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) missed analyst estimates by 50%. Revenue is expected to decline by 6.5% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥75.00 per share at 4.1% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 67% and this is well supported by cash flows. Trailing yield: 4.1%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). Reported Earnings • Feb 04
Third quarter 2023 earnings released: EPS: JP¥84.99 (vs JP¥93.21 in 3Q 2022) Third quarter 2023 results: EPS: JP¥84.99 (down from JP¥93.21 in 3Q 2022). Revenue: JP¥18.8b (down 6.8% from 3Q 2022). Net income: JP¥3.19b (down 9.6% from 3Q 2022). Profit margin: 17% (in line with 3Q 2022). Revenue is expected to decline by 6.0% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.8%. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Annonce • Dec 28
Kaken Pharmaceutical Co., Ltd. to Report Q3, 2023 Results on Feb 03, 2023 Kaken Pharmaceutical Co., Ltd. announced that they will report Q3, 2023 results on Feb 03, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥81.46 (vs JP¥88.47 in 2Q 2022) Second quarter 2023 results: EPS: JP¥81.46 (down from JP¥88.47 in 2Q 2022). Revenue: JP¥18.6b (down 2.7% from 2Q 2022). Net income: JP¥3.06b (down 9.0% from 2Q 2022). Profit margin: 16% (down from 18% in 2Q 2022). Revenue is expected to decline by 6.0% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.5%. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 2 independent directors. 7 non-independent directors. Independent Outside Director Shoichiro Takagi was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 10
Second quarter 2023 earnings released: EPS: JP¥81.46 (vs JP¥88.47 in 2Q 2022) Second quarter 2023 results: EPS: JP¥81.46 (down from JP¥88.47 in 2Q 2022). Revenue: JP¥18.6b (down 2.7% from 2Q 2022). Net income: JP¥3.06b (down 9.0% from 2Q 2022). Profit margin: 16% (down from 18% in 2Q 2022). Revenue is expected to decline by 6.0% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 30 November 2022. Payout ratio is a comfortable 62% and this is well supported by cash flows. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.3%). Annonce • Aug 28
Kaken Pharmaceutical Co., Ltd. to Report Q2, 2023 Results on Nov 08, 2022 Kaken Pharmaceutical Co., Ltd. announced that they will report Q2, 2023 results on Nov 08, 2022 Reported Earnings • Aug 04
First quarter 2023 earnings released: EPS: JP¥76.89 (vs JP¥87.76 in 1Q 2022) First quarter 2023 results: EPS: JP¥76.89 (down from JP¥87.76 in 1Q 2022). Revenue: JP¥18.2b (down 1.4% from 1Q 2022). Net income: JP¥2.91b (down 14% from 1Q 2022). Profit margin: 16% (down from 18% in 1Q 2022). Over the next year, revenue is expected to shrink by 6.3% compared to a 4.7% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Annonce • Jun 03
Kaken Pharmaceutical Co., Ltd. to Report Q1, 2023 Results on Aug 03, 2022 Kaken Pharmaceutical Co., Ltd. announced that they will report Q1, 2023 results on Aug 03, 2022 Reported Earnings • May 13
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥251 (down from JP¥347 in FY 2021). Revenue: JP¥76.0b (up 1.4% from FY 2021). Net income: JP¥9.55b (down 29% from FY 2021). Profit margin: 13% (down from 18% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.4%. Over the next year, revenue is expected to shrink by 6.6% compared to a 4.6% growth forecast for the pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Annonce • May 13
Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 29, 2022 Kaken Pharmaceutical Co., Ltd., Annual General Meeting, Jun 29, 2022. Annonce • May 12
Kaken Pharmaceutical Co., Ltd. (TSE:4521) announces an Equity Buyback for 350,000 shares, representing 0.92% for ¥1,500 million. Kaken Pharmaceutical Co., Ltd. (TSE:4521) announces a share repurchase program. Under the program, the company will repurchase 350,000 shares, representing 0.92% of its share capital, for ¥1,500 million. The purpose of the program is to implement a flexible capital policy in response to changes in the business environment. The program will run until December 28, 2022. As of April 30, 2022, the company had 37,856,819 shares in issue (excluding treasury stock) and 8,082,911 shares of treasury stock. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 7 new directors. 4 experienced directors. 1 highly experienced director. 2 independent directors (7 non-independent directors). Chairman of the Board Tetsuo Onuma is the most experienced director on the board, commencing their role in 2005. Independent Outside Director Shoichiro Takagi was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Annonce • Apr 08
Kaken Pharmaceutical Co., Ltd. to Report Fiscal Year 2022 Results on May 11, 2022 Kaken Pharmaceutical Co., Ltd. announced that they will report fiscal year 2022 results on May 11, 2022 
