Sosei Group (4565) AI Stock Analysis

• Market Cap: ¥78.19B
• Dividend Yield: N/A
• Average Volume (3M): 848.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -1.96%
• EPS Growth: -64.18%
• Country: JP
• Employees: 387
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -18.49
• Shares Outstanding: 90,496,735
• 10 Day Avg. Volume: 652,890
• 30 Day Avg. Volume: 848,950
• PEG Ratio: 0.51
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 3.26
• P/FCF Ratio: -11.41
• 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: ¥1,393.40
• Price Target Upside: 61.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -3.78
• Revenue Forecast (FY): ¥34.49B

• Rating: 46 Neutral
• Price Target: ¥858.00 ▼(-0.46% Downside)

Sosei Group's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and negative profitability. Technical analysis suggests a bearish trend, although there is potential for short-term recovery. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing strategies, which can support long-term profitability as the company scales.

Pipeline of Product Candidates

A robust pipeline in neurology, respiratory diseases, and oncology positions Sosei Group for future growth and potential breakthroughs in high-demand areas.

Revenue from Partnerships

Partnerships provide a diversified revenue stream through upfront payments, milestones, and royalties, reducing dependency on single income sources.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in market expansion or product adoption, which could hinder long-term financial performance if not addressed.

Negative Profitability

Negative profitability reflects operational inefficiencies and challenges in cost management, which could impact the company's ability to sustain operations.

Cash Flow Challenges

Negative operating cash flow suggests difficulties in generating sufficient cash from operations, potentially limiting investment in growth opportunities.

Sosei Group Business Overview & Revenue Model

Company Description

Nxera Pharma Co., Ltd. develops and sells biopharmaceutical products in Japan, Switzerland, the United States, Bermuda, and the United Kingdom. Its product portfolio products include Ultibro/Breezhaler and Seebri/Breezhaler for the treatment of chronic obstructive pulmonary disease; Enerzair and Breezhaler for the treatment of asthma; ORAVI, a novel formulation for the treatment of oropharyngeal candidiasis; and PIVLAZ for the treatment of cerebral vasospasm indications. The company's development products pipeline consists of HTL0039732 for immuno-oncology indications; HTL0048149 for schizophrenia disorders; Daridorexant for the treatment of insomnia; HTL0016878 for schizophrenia and other neuropsychiatric disorders; PF-07081532 for Type 2 diabetes mellitus and obesity; PF-07054894 for inflammatory bowel disease; PF-07258669 for anorexia; PF-06954522 for metabolic diseases; NBI-1117569 for neurology diseases; and NBI-1117570 for central nervous system (CNS) disorders. It is also involved in the development of GPR35 agonist, for inflammatory bowel disease/GI disorders, which is in preclinical stage; and other discovery and preclinical stage drugs. Nxera Pharma Co., Ltd. has a strategic collaboration with AbbVie, Biohaven, Genentech Inc., GSK, Pfizer Inc., Neurocrine Biosciences Inc., Novartis International AG, and Verily. Nxera Pharma Co., Ltd. was incorporated in 1990 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sosei Group generates revenue primarily through partnerships and collaborations with other pharmaceutical and biotechnology companies, which provide upfront payments, milestone payments, and royalties based on the sales of products developed under these agreements. The company also earns revenue from licensing its proprietary technologies and drug candidates to third parties. Additionally, Sosei Group may receive funding from government grants or research institutions for specific projects. The successful advancement of its drug candidates through clinical trials and into commercialization is crucial for maximizing revenue streams.

Sosei Group Financial Statement Overview

Summary

Sosei Group shows revenue growth but struggles with profitability and cash flow. The balance sheet is moderately stable, but negative returns on equity and cash flow issues indicate financial instability.

Income Statement

The income statement shows a mixed performance. While there is a positive revenue growth trend in the TTM, the company is struggling with negative net profit margins and EBIT margins, indicating operational inefficiencies. The gross profit margin remains relatively strong, but the consistent net losses are a concern.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The debt-to-equity ratio is close to 1, suggesting a balanced approach to leveraging. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, which is a positive sign.

Cash Flow

Cash flow analysis reveals significant challenges. The company has negative operating cash flow and free cash flow, although there is a notable improvement in free cash flow growth in the TTM. The free cash flow to net income ratio is above 1, which is positive, but the overall cash flow situation remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.70B	28.84B	12.77B	15.57B	17.71B	8.84B
Gross Profit	20.43B	21.22B	9.66B	14.64B	16.78B	8.08B
EBITDA	-3.42B	105.00M	-5.71B	3.57B	2.19B	3.19B
Net Income	-6.14B	-4.84B	-7.19B	382.00M	1.02B	1.48B
Balance Sheet
Total Assets	144.18B	151.50B	157.20B	99.42B	96.98B	76.47B
Cash, Cash Equivalents and Short-Term Investments	28.46B	36.20B	49.06B	66.56B	60.17B	40.01B
Total Debt	63.14B	67.90B	73.97B	29.73B	29.27B	16.62B
Total Liabilities	78.52B	82.98B	90.39B	41.48B	39.52B	24.08B
Stockholders Equity	65.66B	68.52B	66.81B	57.94B	57.47B	52.38B
Cash Flow
Free Cash Flow	-13.97B	-8.24B	-6.12B	9.65B	6.89B	4.57B
Operating Cash Flow	-13.51B	-7.72B	-5.27B	9.95B	7.09B	4.67B
Investing Cash Flow	-1.48B	-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: Positive
• Last Price: 862.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 862 is above the 20-day moving average (MA) of 850.00, below the 50-day MA of 894.82, and below the 200-day MA of 893.37, indicating a neutral trend. The MACD of -6.87 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 74.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4565.

Sosei Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7774	58 Neutral	¥19.57B	-48.77	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4974	49 Neutral	¥94.65B	-14.83	―	2.16%	-0.16%	-802.20%
4565	46 Neutral	¥78.19B	―	-9.05%	―	-1.96%	-64.18%
2160	45 Neutral	¥137.08B	-167.02	-1.81%	―	13.78%	-110.02%
4593	37 Underperform	¥33.25B	-7.33	―	―	-82.33%	47.73%

Sosei Group Corporate Events

Nxera Pharma Initiates Bond Buyback and Consent Solicitation

Nxera Pharma Co., Ltd. has announced a buyback and consent solicitation for its existing convertible bonds due in 2028. The company aims to amend the terms of these bonds to reduce near-term redemption risk and secure liquidity for strategic growth investments. By removing bondholders’ early redemption options and conducting a tender offer up to ¥5 billion, Nxera seeks to maintain lower funding costs and avoid dilutive effects on shareholders.

Nxera Pharma Launches New Employee Stock Ownership Plan in Japan

Nxera Pharma has announced the introduction of a new Employee Stock Ownership Plan (J-ESOP) for its employees residing in Japan, replacing the existing Restricted Share Unit Plan. This strategic move aims to enhance employee motivation and engagement by aligning their interests with the company’s performance, providing tax benefits, and reducing the concentration of share sales, thereby potentially increasing the company’s corporate value and market performance.

Nxera Pharma Announces Strategic Restructuring to Boost Profitability

Nxera Pharma Co., Ltd. announced a strategic restructuring to enhance its path to profitability by concentrating on high-value programs and reducing operating expenses. The company aims to achieve significant cost savings and streamline operations, including a 15% workforce reduction, to support its ambitious 2030 vision of achieving JPY50 billion in net sales and a 30% operating profit margin. This restructuring will focus on prioritized R&D programs, particularly in obesity and metabolic disorders, while utilizing AI technology to enhance drug discovery processes.

Nxera Pharma Advances in Metabolic Therapies Amid Financial Challenges

Nxera Pharma reported significant advancements in its strategic focus on obesity and metabolic diseases during the third quarter of 2025, highlighted by the launch of a proprietary pipeline led by an oral GLP-1 agonist. The company also achieved key milestones in its collaborations, including a $10 million payment from AbbVie for neurological disease research, and presented promising Phase 1 trial results for its cancer immunotherapy candidate. Despite these operational successes, Nxera experienced a financial downturn with increased R&D expenses and a net loss of JPY 4,809 million, reflecting the company’s investment in future growth and the impact of a weaker yen.

Nxera Pharma Achieves Key Milestone in AbbVie Collaboration

Nxera Pharma announced a significant milestone in its collaboration with AbbVie, receiving a US$10 million payment for identifying validated molecules targeting neurological diseases. This achievement underscores the productivity of their partnership, leveraging Nxera’s NxWave™ platform, and positions the company for further financial gains through potential future milestones and royalties.

Nxera Pharma Advances Cancer Immunotherapy to Phase 2a Trial

Nxera Pharma, in collaboration with Cancer Research UK, has initiated a Phase 2a clinical trial for its investigational cancer immunotherapy drug HTL0039732, following successful Phase 1 results. The trial aims to evaluate the drug’s efficacy in treating advanced solid tumors, potentially offering new hope for patients with cancers resistant to current treatments, and marks a significant step in Nxera’s efforts to develop groundbreaking therapies.