Medrx Co., Ltd. (4586) AI Stock Analysis

• Market Cap: ¥6.41B
• Dividend Yield: N/A
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -52.41%
• EPS Growth: -80.31%
• Country: JP
• Employees: 22
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.60
• Shares Outstanding: 59,365,100
• 10 Day Avg. Volume: 1,116,360
• 30 Day Avg. Volume: 2,574,156
• PEG Ratio: 1.03
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 45.31
• P/FCF Ratio: -5.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥106.00 ▼(-6.19% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held down primarily by persistent, large losses and ongoing negative operating/free cash flow despite strong gross margins and a sharp 2025 revenue rebound. Technical signals are broadly neutral, while valuation is pressured by negative earnings and no stated dividend support.

Positive Factors

Conservative balance sheet (no debt)

Medrx’s zero-debt position from 2021–2025 materially reduces solvency risk and interest burdens, giving management durable financial flexibility. Over a 2–6 month horizon this supports continued R&D and partnering negotiations without immediate creditor pressure, aiding strategic optionality.

Very high gross margins

Sustained gross margins near 85–90% signal structural profitability at the product level tied to its proprietary transdermal technology. High product-level economics support scalable licensing, strong per-unit contribution and long-term margin resilience if fixed operating costs are controlled.

Sharp 2025 revenue rebound

A large revenue rebound in 2025 suggests recent commercialization or partnership progress that materially increased top-line throughput. For the medium term this provides evidence of commercial traction that can translate into recurring licensing, milestone and supply revenues if sustained.

Negative Factors

Persistent cash burn

The company generates negative operating and free cash flow annually, indicating it is not self-funding operations. Over months this necessitates external financing or equity raises, which can dilute shareholders, constrain discretionary investment and raise execution risk for product launches.

Severe and worsening net losses

Deepening net losses and a collapsing net margin reflect operating costs far outpacing revenue growth. Persisting at this scale will erode equity, reduce reinvestment capacity and hinder the company’s ability to convert product-level margins into positive net profitability in the medium term.

Highly volatile revenue / small scale

Revenue volatility and a relatively small operational base make results sensitive to timing of partnerships, milestones and single-product sales. This structural variability complicates planning, risks uneven cash flow, and makes margins and capital needs less predictable across 2–6 months.

Medrx Co., Ltd. Business Overview & Revenue Model

Company Description

MedRx Co., Ltd, a pharmaceutical formulation development company, provides pharmaceutical drugs based on the transdermal absorption system in Japan. The company develops medicines based on Ionic liquid transdermal system (ILTS) and Nano-sized Colloid Transdermal System (NCTS); and researches and develops painless transdermal administration system for vaccines, nucleic acid medicines, protein medicines, etc. Its products pipeline includes MRX-4TZT, which is in phase I clinical trials for the treatment of spastic paralysis; MRX-9FLT that is in phase I clinical trials to treat chronic, cancer, and severe pain; and MRX-7MLL and MRX-6LDT that is in pre-clinical trials to treat Alzheimer's disease and chronic pain, as well as MRX-5LBT that has completed the clinical trials for the treatment of postherpetic nerve pain. MedRx Co., Ltd was incorporated in 2002 and is headquartered in Higashikagawa, Japan.

How the Company Makes Money

Medrx generates revenue primarily by monetizing its transdermal drug delivery technologies and related pharmaceutical products. Key revenue streams typically include: (1) sales of approved pharmaceutical products (including transdermal patches) where Medrx is involved in manufacturing and/or commercialization; (2) licensing arrangements in which Medrx grants rights to its formulations, patch technologies, or product candidates to partner companies in exchange for upfront payments, milestone payments tied to development/approval progress, and ongoing royalties based on partner sales; and (3) development and supply-related income such as contract development, manufacturing, and/or supply of transdermal products or intermediates to partners. Significant earnings drivers are the successful progression of its pipeline (which can trigger milestone revenues), the commercial performance of partnered or self-involved products (which affects product sales and royalty income), and the formation of licensing/supply partnerships that expand market access. null

Medrx Co., Ltd. Financial Statement Overview

Summary

Strong 2025 revenue rebound and very high gross margins are positives, and the company carries no debt, reducing solvency risk. However, results are dominated by severe and worsening losses (net margin deeply negative) and consistently negative operating and free cash flow, indicating ongoing cash burn and weak underlying profitability.

Income Statement

Revenue is highly volatile but shows a sharp rebound in 2025 (annual revenue up ~186% vs. 2024), and gross margin is strong in recent years (about 85–90% in 2023–2025). However, the company remains deeply unprofitable with consistently large operating and net losses; profitability worsened in 2025 versus 2024 with net margin falling to about -732% (from about -314%), indicating expenses are far outpacing the revenue base despite strong gross profit.

Balance Sheet

The balance sheet is conservatively levered with zero debt reported from 2021–2025 and a low debt load even in 2020, which reduces solvency risk and financial fragility. That said, ongoing losses are pressuring shareholder value, with returns on equity consistently negative (roughly -37% to -92% across the period), signaling the equity base is not generating profits and could erode if losses persist.

Cash Flow

Cash generation is a key weakness: operating cash flow is negative every year (roughly -0.8B to -1.1B), and free cash flow is also consistently negative, including a deterioration in 2025. While free cash flow tracks net losses closely (free cash flow roughly in line with net income in magnitude), the business is not self-funding, implying continued reliance on external financing or balance-sheet resources to sustain operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.24M	128.08M	257.92M	29.53M	59.48M	8.35M
Gross Profit	17.19M	113.01M	219.19M	-18.43M	10.45M	-54.25M
EBITDA	-1.24B	-928.13M	-754.62M	-888.00M	-1.05B	-1.00B
Net Income	-1.38B	-937.37M	-806.76M	-932.90M	-1.11B	-1.06B
Balance Sheet
Total Assets	1.93B	2.16B	2.27B	2.05B	1.40B	2.11B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.75B	1.98B	1.72B	994.02M	1.70B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	62.52M	108.54M	107.00M	127.52M	185.56M	153.10M
Stockholders Equity	1.87B	2.05B	2.17B	1.92B	1.21B	1.96B
Cash Flow
Free Cash Flow	0.00	-970.86M	-803.00M	-913.76M	-1.08B	-926.23M
Operating Cash Flow	0.00	-888.11M	-803.00M	-913.00M	-1.07B	-923.69M
Investing Cash Flow	0.00	-82.75M	-3.15M	-759.00K	-1.96M	-2.54M
Financing Cash Flow	0.00	745.09M	1.07B	1.64B	356.31M	815.91M

Medrx Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 113.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4586, the sentiment is Neutral. The current price of 113 is above the 20-day moving average (MA) of 105.45, above the 50-day MA of 111.04, and above the 200-day MA of 106.01, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4586.

Medrx Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4539	64 Neutral	¥6.33B	11.64	―	3.21%	4.25%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4597	51 Neutral	¥8.74B	-13.67	-90.96%	―	243.16%	-23.00%
4892	48 Neutral	¥6.12B	-6.80	―	―	56.17%	-11.63%
4586	45 Neutral	¥6.41B	-10.38	―	―	-52.41%	-80.31%
4582	43 Neutral	¥7.02B	-0.95	―	―	-50.27%	-3.33%
4883	41 Neutral	¥5.32B	-2.01	―	―	―	47.43%