Sosei Group (4565) AI Stock Analysis

• Market Cap: $79.27B
• Dividend Yield: N/A
• Average Volume (3M): 828.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 87.83%
• EPS Growth: 75.84%
• Country: JP
• Employees: 387
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -8.45
• Shares Outstanding: 90,496,735
• 10 Day Avg. Volume: 665,630
• 30 Day Avg. Volume: 828,013
• PEG Ratio: <0.01
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,700.54
• Price Target Upside: 98.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ¥875.00 ▲(2.34%Upside)

The stock is pressured by significant financial performance weaknesses, particularly in profitability and cash flows. Technical analysis shows a mixed outlook with short-term bullish signals but long-term bearish trends. Valuation is strained by negative earnings and the absence of dividends. The score reflects the risks associated with financial instability and valuation pressures.

Sosei Group Business Overview & Revenue Model

Company Description

Sosei Group Corporation, a prominent biopharmaceutical company based in Japan, specializes in the development and commercialization of innovative medicines. The company operates primarily in the biotechnology and pharmaceutical sectors, focusing on drug discovery and early-stage clinical development. Sosei Group leverages its proprietary drug discovery platform to create novel therapeutics, with a particular emphasis on addressing unmet medical needs in disease areas such as neurology, immunology, and oncology.

How the Company Makes Money

Sosei Group generates revenue through multiple streams, primarily from partnerships and collaborations with global pharmaceutical companies. These collaborations often involve co-development or licensing agreements for promising drug candidates, allowing Sosei to receive milestone payments and royalties based on the progress and sales of these drugs. Additionally, the company earns revenue from research and development services provided to its partners. Sosei's strategic alliances and partnerships are crucial to its business model, enabling it to leverage its drug discovery platform while sharing the financial risks associated with drug development.

Sosei Group Financial Statement Overview

Summary

Sosei Group faces significant operational and financial challenges. Despite some revenue growth, the company struggles with declining profitability and high leverage, resulting in negative cash flows and potential liquidity concerns. Strong gross profit and equity levels offer limited stability.

Income Statement

The income statement reveals a concerning trend with declining revenues and profitability. Revenue has grown year-over-year from 2020 to 2025, but recent periods show negative net income and EBIT, particularly in the TTM. The gross profit margin remains strong, yet the net profit margin is negative due to significant losses. The revenue growth rate from 2024 to TTM (2025) is modest at approximately 7%, but the EBIT and net income reflect operating challenges.

Balance Sheet

The balance sheet indicates a moderate financial position with some red flags. The company has a high total debt level, leading to a debt-to-equity ratio of approximately 0.99 in the TTM, which is on the higher side. Stockholders' equity is strong, but the overall equity ratio is declining due to increased liabilities. Return on equity is negative due to losses, posing a risk to financial stability.

Cash Flow

Cash flow analysis shows significant challenges, with negative operating and free cash flows in the TTM. The free cash flow growth rate is negative, suggesting deteriorating cash generation ability. The operating cash flow to net income ratio is not applicable due to negative net income. Negative cash flows indicate potential liquidity issues, requiring attention to cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.87B	28.84B	12.77B	15.57B	17.71B	8.84B
Gross Profit	20.83B	21.22B	9.66B	14.64B	16.78B	8.08B
EBITDA	496.00M	99.00M	-5.71B	5.01B	8.19B	2.20B
Net Income	-2.32B	-4.84B	-7.19B	382.00M	1.02B	1.48B
Balance Sheet
Total Assets	152.29B	151.50B	157.20B	99.42B	96.98B	76.47B
Cash, Cash Equivalents and Short-Term Investments	46.52B	36.20B	49.06B	66.56B	60.17B	40.01B
Total Debt	72.47B	67.90B	73.97B	29.73B	29.27B	16.62B
Total Liabilities	86.41B	82.98B	90.39B	41.48B	39.52B	24.08B
Stockholders Equity	65.89B	68.52B	66.81B	57.94B	57.47B	52.38B
Cash Flow
Free Cash Flow	-5.49B	-8.24B	-6.12B	9.65B	6.89B	4.57B
Operating Cash Flow	-4.90B	-7.72B	-5.27B	9.95B	7.09B	4.67B
Investing Cash Flow	-1.12B	-4.76B	-63.79B	1.04B	278.00M	-150.00M
Financing Cash Flow	-6.70B	-6.85B	48.33B	-4.89B	11.12B	20.28B

Sosei Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 855.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4565, the sentiment is Negative. The current price of 855 is below the 20-day moving average (MA) of 898.80, below the 50-day MA of 883.04, and below the 200-day MA of 999.57, indicating a bearish trend. The MACD of -5.96 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4565.

Sosei Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	¥338.68B	10.99	-2.99%	2.58%	11.79%	-10.20%
4974	58 Neutral	¥96.45B	92.65		2.12%	3.53%	-29.66%
7774	58 Neutral	¥23.15B	―		―	-2.34%	-278.32%
2160	50 Neutral	¥157.42B	108.76	-2.52%	―	-17.18%	-108.99%
4565	48 Neutral	$79.27B	―	-3.36%	―	87.83%	75.84%
4593	37 Underperform	¥44.28B	―		―	374.19%	35.53%

Sosei Group Corporate Events

Nxera Pharma Secures $4.8 Million Milestone Payment from Centessa

Nxera Pharma announced it will receive US$4.8 million in milestone payments from Centessa Pharmaceuticals following the initiation of clinical development for ORX142, a novel orexin receptor 2 agonist. This development marks a significant step in the treatment of neurological and neurodegenerative disorders, with the revenue from these milestones recognized in the second and third quarters of 2025. The collaboration underscores Nxera’s strategic partnerships and its impact on advancing treatments in high-growth medical areas.

The most recent analyst rating on (JP:4565) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Sosei Group stock, see the JP:4565 Stock Forecast page.

Nxera Pharma Receives $15 Million Milestone Payment as Phase 3 Schizophrenia Trial Begins

Nxera Pharma announced that its partner, Neurocrine Biosciences, has initiated the Phase 3 trial of NBI-1117568 for schizophrenia, resulting in a $15 million payment to Nxera. This milestone reflects Nxera’s strategic partnerships and its focus on addressing significant unmet needs in the medical field, potentially enhancing its market positioning and stakeholder value.

The most recent analyst rating on (JP:4565) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Sosei Group stock, see the JP:4565 Stock Forecast page.

Nxera Pharma Reaches Key Milestone in Eli Lilly Collaboration

Nxera Pharma has achieved a significant development milestone in its collaboration with Eli Lilly, targeting diabetes and metabolic diseases. This milestone, achieved through Nxera’s NxWave™ platform, validates their drug design capabilities and results in an undisclosed payment from Lilly. The collaboration, initiated in 2022, aims to leverage Nxera’s expertise in GPCR-focused drug design and Lilly’s development and commercialization capabilities. This achievement positions Nxera for potential future milestones and royalties, enhancing its industry positioning and offering promising implications for stakeholders.

The most recent analyst rating on (JP:4565) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Sosei Group stock, see the JP:4565 Stock Forecast page.

Nxera Pharma Reports Strong Q1 2025 Results and Strategic Advances

Nxera Pharma has reported its first quarter 2025 results, highlighting significant operational progress and financial improvements. The company has secured key development and commercialization agreements, including the assignment of rights for cenerimod and a partnership for daridorexant, while advancing its partnered programs with Neurocrine Biosciences and Tempero Bio. Financially, Nxera saw a notable increase in revenue and a reduction in net loss, attributed to increased sales and strategic cost management.

Nxera Pharma’s Schizophrenia Treatment Enters Phase 3 Trials

Nxera Pharma announced that its partner, Neurocrine Biosciences, has initiated a Phase 3 trial for NBI-1117568, an investigational treatment for schizophrenia. This marks a significant milestone as it is the first NxWave™-designed molecule to reach this stage, potentially enhancing Nxera’s position in the neuropsychiatric treatment market. The trial will assess the drug’s efficacy, safety, and tolerability, with the potential to offer a novel mechanism for treating schizophrenia without the need for combination therapy, which could have significant implications for stakeholders.