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ONO Pharmaceutical Co
(4528)
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Rating:74Outperform
Price Target:
¥2,670.00
▲(9.65% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by strong financial quality (high margins, strong cash conversion, and low leverage), partially offset by weaker recent momentum (TTM revenue decline and normalization from peak profitability). Valuation adds support via a reasonable P/E and a solid dividend yield, while technicals are mixed with near-term softness but a still-supportive longer-term trend.
Positive Factors
High margins
Sustained high gross and operating margins reflect durable pricing power and efficient cost structure in specialty pharmaceuticals. Over 2–6 months this supports cash generation, reinvestment in R&D, and ability to defend margins against pricing pressure or higher SG&A.
Negative Factors
Revenue contraction
A declining top line signals product lifecycle headwinds or slowing demand for key drugs. Over the medium term this can pressure R&D funding trade-offs, reduce operating leverage benefits, and limit milestone-linked upside from partnerships.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins
Sustained high gross and operating margins reflect durable pricing power and efficient cost structure in specialty pharmaceuticals. Over 2–6 months this supports cash generation, reinvestment in R&D, and ability to defend margins against pricing pressure or higher SG&A.
Read all positive factors
ONO Pharmaceutical Co (4528) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.12T
Dividend Yield3.36%
Average Volume (3M)2.41M
Price to Earnings (P/E)14.7
Beta (1Y)0.52
Revenue Growth1.55%
EPS Growth77.55%
CountryJP
Employees4,206
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)162.27
Shares Outstanding498,692,800
10 Day Avg. Volume2,786,750
30 Day Avg. Volume2,407,313
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.39
Price to Sales (P/S)2.29
P/FCF Ratio9.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,500.00Price Target Upside2.67% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)150.97
Revenue Forecast (FY)¥454.05B
ONO Pharmaceutical Co Business Overview & Revenue Model
Company Description
Ono Pharmaceutical Co., Ltd., along with its affiliated companies, is engaged in the global development, manufacturing, procurement, and sale of a diverse range of pharmaceutical products and diagnostic tools. Its diverse oncology portfolio includ...
How the Company Makes Money
ONO primarily makes money by selling prescription pharmaceuticals, with revenue recognized from the distribution of its branded drugs to wholesalers, hospitals, and pharmacies (predominantly in Japan). Key revenue streams typically include: (1) Pr...
ONO Pharmaceutical Co Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Neutral
Mixed but balanced. The quarter delivered the company's highest-ever Q1 revenue (up 8.4% YoY) driven by strong FORXIGA performance and the addition of Deciphera (notably QINLOCK and ROMVIMZA). Strategic pipeline moves (povetacicept acquisition) and regulatory approvals/positive opinions support medium-term growth. However, near-term profitability was weakened by Deciphera operating losses, acquisition-related amortization and increased R&D/SG&A, while OPDIVO faces competitive pressure and slower recovery in lung cancer prescriptions. Management maintained full-year guidance, signaling confidence but with clear execution and timing risks.Positive Updates
Highest Q1 Revenue on Record
Revenue increased by JPY9.9 billion (8.4% YoY) to JPY127.5 billion, the highest Q1 sales in company history; sales revenue component rose JPY8.4 billion (10.6% YoY) to JPY87.8 billion and royalties/other increased JPY1.4 billion (3.7% YoY) to JPY39.8 billion.
Negative Updates
Core Operating Profit Decline
Core operating profit decreased by JPY3.5 billion (10.1% YoY) to JPY31.6 billion, primarily driven by a JPY4.8 billion operating loss at Deciphera included this period but not in the prior-year comparison.
Read all updates
Q1-2026 Updates
Positive
Negative
Highest Q1 Revenue on Record
Revenue increased by JPY9.9 billion (8.4% YoY) to JPY127.5 billion, the highest Q1 sales in company history; sales revenue component rose JPY8.4 billion (10.6% YoY) to JPY87.8 billion and royalties/other increased JPY1.4 billion (3.7% YoY) to JPY39.8 billion.
Read all positive updates
Company Guidance
guidance reiterated that full-year guidance is unchanged: Q1 revenue rose JPY9.9bn (8.4%) to JPY127.5bn (sales JPY87.8bn, royalties JPY39.8bn), driven by JPY10.1bn of Deciphera sales (QINLOCK JPY8.9bn; ROMVIMZA JPY1.1bn, annualized JPY5bn), while domestic sales fell JPY1.6bn and OPDIVO IV sales dropped JPY2.6bn to JPY29.4bn; FORXIGA grew JPY2.9bn (13%) to JPY25.1bn. Core operating profit fell JPY3.5bn (10.1%) to JPY31.6bn and core profit for the period fell JPY3.9bn (13.7%) to JPY24.8bn (full-IFRS operating profit down JPY8.7bn to JPY22.0bn; profit for the period JPY17.7bn), with R&D up JPY7.4bn and SG&A up JPY6.1bn partly due to Deciphera (Deciphera operating loss JPY4.8bn); reconciling amortization/step-up items totaled about JPY8.9bn. OPDIVO guidance: FY2025 sales target JPY125bn (+JPY4.7bn YoY) with specific new‑patient share goals—gastric 65% now, target 70% by year‑end; esophageal new‑patient share 53% aiming for 60%; lung new‑patient share 17% vs target 30% (PD‑L1‑negative target 50% in FY2025); hepatocellular carcinoma first‑line new‑patient share target 30% by Dec 2026—and ~70,000 existing patients remain untreated for existing indications; timing for new approvals and povetacicept filing remains subject to trial timelines.ONO Pharmaceutical Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 504.41B | 515.78B | 486.87B | 502.67B | 447.19B | 361.36B |
| Gross Profit | 371.03B | 374.07B | 335.47B | 372.67B | 334.28B | 264.91B |
| EBITDA | 141.44B | 133.94B | 87.86B | 181.98B | 161.11B | 122.82B |
| Net Income | 76.33B | 69.77B | 50.05B | 127.98B | 112.72B | 80.52B |
Balance Sheet | ||||||
| Total Assets | 1.08T | 1.11T | 1.06T | 913.67B | 882.44B | 739.20B |
| Cash, Cash Equivalents and Short-Term Investments | 221.20B | 237.11B | 210.38B | 204.59B | 164.29B | 116.97B |
| Total Debt | 117.10B | 120.94B | 146.68B | 8.86B | 9.17B | 8.80B |
| Total Liabilities | 211.67B | 249.87B | 275.84B | 115.06B | 134.62B | 77.53B |
| Stockholders Equity | 866.83B | 850.73B | 782.45B | 792.96B | 741.87B | 655.91B |
Cash Flow | ||||||
| Free Cash Flow | 128.74B | 130.80B | 77.03B | 106.64B | 154.27B | 56.33B |
| Operating Cash Flow | 134.50B | 136.82B | 82.46B | 110.66B | 159.61B | 61.83B |
| Investing Cash Flow | 6.61B | -39.86B | -136.78B | 48.08B | -100.26B | 6.04B |
| Financing Cash Flow | -61.59B | -65.49B | 94.30B | -89.85B | -32.48B | -60.24B |
ONO Pharmaceutical Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥11.41T | 24.20 | 24.02% | 2.87% | 12.25% | 19.19% | |
74 Outperform | ¥1.12T | 14.69 | 8.54% | 3.28% | 1.55% | 77.55% | |
73 Outperform | ¥1.34T | 18.34 | 8.39% | 2.52% | 3.20% | 43.05% | |
71 Outperform | ¥1.36T | 35.31 | 4.44% | 3.44% | 4.56% | -16.55% | |
65 Neutral | ¥3.97T | 13.53 | 17.44% | 3.60% | 11.87% | 474.29% | |
58 Neutral | ¥4.67T | 19.44 | 15.74% | 2.79% | 15.51% | -16.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4528
ONO Pharmaceutical Co
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ONO Pharmaceutical Co Corporate Events
Ono Pharmaceutical Lifts Q1 Profits Despite Revenue Decline, Confirms FY2026 Outlook
Jul 31, 2026
Ono Pharmaceutical reported first-quarter FY2026 revenue of ¥116.2 billion, down 8.9% year on year, but significantly improved profitability, with operating profit up 39.4% and profit attributable to owners rising 36.7%. Core operating profit...
ONO Pharmaceutical Details FY2025 Results and FY2026 Outlook with Focus on Pipeline and Core Metrics
May 8, 2026
ONO Pharmaceutical Co., Ltd. released supplementary materials for its fiscal year 2025 consolidated financial results on a core basis, covering the period from April 1, 2025 to March 31, 2026. The materials outline sales revenue for major products...
Ono Pharmaceutical Delivers Strong FY 2025 Profits but Guides for Lower Revenue in FY 2026
May 8, 2026
Ono Pharmaceutical reported fiscal 2025 revenue of ¥515.8 billion, up 5.9% year on year, with operating profit surging 54.4% and profit attributable to owners jumping 39.4%, reflecting improved margins and stronger core earnings. The company ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.