Solasia Pharma KK (4597) AI Stock Analysis

• Market Cap: ¥8.08B
• Dividend Yield: N/A
• Average Volume (3M): 41.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 243.16%
• EPS Growth: -23.00%
• Country: JP
• Employees: 23
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.53
• Shares Outstanding: 273,414,370
• 10 Day Avg. Volume: 52,616,870
• 30 Day Avg. Volume: 41,982,023
• PEG Ratio: 0.13
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 16.06
• P/FCF Ratio: -8.13
• 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): -2
• Revenue Forecast (FY): ¥1.92B

• Rating: 51 Neutral
• Price Target: ¥30.00 ▲(11.11% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by ongoing unprofitability and continued cash burn despite improved revenue and narrowing losses. Technicals are neutral-to-slightly constructive short term but still weaker versus longer-term averages, while valuation lacks support due to negative earnings and no dividend data.

Positive Factors

Conservative balance sheet

Low leverage and sizeable equity give the company financial flexibility to fund R&D and operations while losses persist. This reduces near-term refinancing pressure, lengthening runway and preserving strategic optionality for partnerships or selective investments over the next several quarters.

Revenue rebound

A strong revenue recovery indicates improving commercial traction or higher product uptake, which can increase operating leverage if sustained. If the company continues to grow revenues, fixed-cost absorption can materially narrow losses and support a multi-quarter path toward break-even.

Margin base and improving cash burn

A relatively solid gross margin plus a noticeable reduction in free cash flow burn show the business can generate better unit economics as sales scale. Sustained margin levels and continued improvement in cash burn are structural positives for future profitability and capital efficiency.

Negative Factors

Structural unprofitability

Persistently large operating and net losses imply the core cost base remains far above revenues. Without durable margin expansion or materially higher sales, continued losses will erode equity and constrain strategic options, making sustained profitability uncertain over several quarters.

Consistent negative cash flow

Repeated negative operating and free cash flow forces reliance on external financing or depletion of balance-sheet reserves. Even with improved burn in 2025, ongoing negative cash flow creates funding risk and potential dilution unless a clear path to sustained positive cash generation is established.

Small operating scale

A very small workforce limits commercial reach, internal R&D throughput and ability to scale operations independently. This elevates execution risk, increases reliance on partners or outsourcing, and can slow revenue diversification needed to absorb fixed costs and reach sustainable margins.

Solasia Pharma KK Business Overview & Revenue Model

Company Description

Solasia Pharma K.K. develops and commercializes drugs in the field of oncology in Japan and other Asian countries. The company offers SP-03 (episil oral liquid) for the protection and relief of oral pain associated with oral mucositis/stomatitis caused by chemotherapy and radiotherapy for cancer; and SP-01 (Sancuso), a transdermal delivery system that delivers granisetron, an anti-emetic into the patient's bloodstream for the treatment of chemotherapy induced nausea and vomiting. It is also developing SP-02 (Darinaparsin), a mitochondrial-targeted agent that has completed phase III clinical study to treat various hematologic and solid cancers; and SP-04 a chemotherapy induced peripheral neuropathy which is in pre-clinical stage. In addition, the company is developing SP-05 (Arfolitixorin) that is in phase III clinical study for the enhancement of antitumor efficacy of fluorouracil, including the treatment for pancreatic cancer, breast cancer, stomach cancer, and head and neck cancers. Solasia Pharma K.K. was founded in 2006 and is based in Tokyo, Japan.

How the Company Makes Money

Solasia Pharma makes money through the commercialization and licensing of its proprietary pharmaceutical products. The company's revenue streams include sales of its approved drugs and milestone payments or royalties from licensing agreements with other pharmaceutical companies. Solasia collaborates with international partners to co-develop and market its products, thereby leveraging their distribution networks and expertise to maximize market reach and revenue potential. The company's earnings are influenced by successful clinical trials, regulatory approvals, and strategic partnerships that enhance its product portfolio and market presence.

Solasia Pharma KK Financial Statement Overview

Summary

Revenue rebounded strongly in 2025, and the balance sheet is a relative strength with low leverage. However, the company remains structurally unprofitable with large operating/net losses and persistent negative operating and free cash flow, despite some improvement in cash burn.

Income Statement

Revenue rebounded strongly in 2025 (up ~31.6% vs. 2024) after multiple years of choppy/negative growth, and gross margin remains solid (~39.9% in 2025, though down from ~58.5% in 2024). However, the company continues to generate large operating losses and net losses every year shown, with 2025 net margin still deeply negative (~-204%), indicating the cost structure remains far above the current revenue base. While losses narrowed materially versus 2024, profitability and operating leverage are still the key weakness.

Balance Sheet

The balance sheet is a relative strength: leverage is low in recent years, with 2025 debt-to-equity around 0.09 and total debt modest versus equity. Equity remains positive and sizeable versus assets, providing some financial flexibility. The key risk is ongoing losses, which can erode equity over time and eventually pressure funding needs despite today’s low debt load.

Cash Flow

Cash generation is weak, with operating cash flow and free cash flow negative in every year provided. The cash burn improved in 2025 (free cash flow about -¥847M vs. roughly -¥1.03B in 2024), but it remains meaningfully negative and therefore reliant on external financing or balance-sheet resources. The main positive is the direction of improvement in the most recent year, but consistency and a path to sustained positive cash flow are not yet evident.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	429.00M	316.00M	617.00M	1.09B	559.00M
Gross Profit	171.00M	185.00M	337.00M	662.00M	374.00M
EBITDA	-822.00M	-1.75B	-635.00M	-1.94B	-1.92B
Net Income	-876.00M	-1.94B	-1.11B	-2.55B	-2.48B
Balance Sheet
Total Assets	2.15B	1.36B	2.23B	3.13B	3.14B
Cash, Cash Equivalents and Short-Term Investments	1.39B	886.00M	728.00M	803.00M	714.00M
Total Debt	159.00M	25.00M	60.00M	37.00M	84.00M
Total Liabilities	392.00M	206.00M	354.00M	472.00M	557.00M
Stockholders Equity	1.75B	1.16B	1.88B	2.66B	2.59B
Cash Flow
Free Cash Flow	-847.00M	-1.03B	-359.00M	-2.48B	-2.64B
Operating Cash Flow	-847.00M	-1.03B	-359.00M	-2.07B	-2.47B
Investing Cash Flow	-81.00M	0.00	2.00M	-418.00M	-164.00M
Financing Cash Flow	1.43B	1.18B	275.00M	2.57B	361.00M

Solasia Pharma KK Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4597, the sentiment is Positive. The current price of 27 is below the 20-day moving average (MA) of 30.45, below the 50-day MA of 29.66, and below the 200-day MA of 33.87, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4597.

Solasia Pharma KK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4574	66 Neutral	¥15.07B	16.38	―	―	-5.41%	―
4539	64 Neutral	¥6.40B	11.74	―	3.21%	4.25%	―
4582	52 Neutral	¥11.96B	-1.92	―	―	-50.27%	-3.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4597	51 Neutral	¥8.08B	-8.59	-90.96%	―	243.16%	-23.00%
4892	48 Neutral	¥6.27B	-7.40	―	―	56.17%	-11.63%
4883	41 Neutral	¥4.90B	-2.08	―	―	―	47.43%

Solasia Pharma KK Corporate Events

Solasia Pharma Advances Oncology Pipeline and Expands Global Reach for Key Cancer Drugs

Solasia Pharma has provided an update on its oncology and supportive care pipeline alongside its 2025 results, highlighting progress in marketed products and early-stage technology projects. The company is advancing nucleic acid medicine for peritoneal dissemination, RNA editing-based gene therapy, novel antibody modification drug discovery, and fluorescent probe technologies through collaborations with multiple research partners.

In China, Solasia’s antiemetic patch Sancuso has resumed supply following a manufacturing site transfer, with a new licensing deal granting MAAB manufacturing and marketing rights across Greater China and commercial sales slated to start in early 2027. The drug’s competitive positioning was reinforced by Phase III data published in The Oncologist, showing superiority over palonosetron in preventing delayed chemotherapy-induced nausea and vomiting.

For its lymphoma drug DARVIAS, Solasia is expanding global reach via out-licensing, including approvals for sales in Japan, ongoing NDAs in Colombia and Peru, and new commercialization rights in 13 Eastern European countries under a Managed Access Program. The company is also pursuing indication expansions into EBV-positive B-cell lymphoma and breast cancer, supported by recent scientific presentations on efficacy reassessment and mechanism of action, underscoring its strategy to broaden the clinical and commercial footprint of its key oncology asset.

The most recent analyst rating on (JP:4597) stock is a Hold with a Yen29.00 price target. To see the full list of analyst forecasts on Solasia Pharma KK stock, see the JP:4597 Stock Forecast page.

Solasia Pharma Narrows Losses on Higher Sales but Withholds 2026 Outlook

Solasia Pharma reported a 35.4% year-on-year increase in consolidated sales to ¥429 million for the fiscal year ended December 31, 2025, but continued to post an operating loss of ¥861 million and a net loss attributable to owners of the parent of ¥876 million. Despite the ongoing losses, the company’s equity position strengthened, with total assets rising to ¥2,145 million, equity attributable to owners of the parent increasing to ¥1,752 million, and cash and cash equivalents climbing to ¥1,387 million, supported by financing activities and a capital structure that remains largely equity-based.

Management again opted against paying dividends for 2025 and maintained a zero-dividend forecast for 2026, signaling a priority on preserving cash to fund operations and development activities. Solasia also refrained from issuing a numerical earnings forecast for the year ending December 31, 2026, citing difficulty in providing a reasonable estimate, which may leave investors with limited visibility into the company’s near-term earnings trajectory even as its balance sheet shows improved liquidity and capital adequacy.

The most recent analyst rating on (JP:4597) stock is a Hold with a Yen29.00 price target. To see the full list of analyst forecasts on Solasia Pharma KK stock, see the JP:4597 Stock Forecast page.

Solasia Pharma Advances Oncology Pipeline and Expands Global Reach for Key Cancer Drugs

Solasia Pharma has updated investors on the status of its key pipeline and marketed products alongside its 2025 financial results, highlighting progress in commercialization and regional partnerships. In China, sales of Sancuso for chemotherapy-induced nausea and vomiting are now led by Lee’s Pharmaceutical following Solasia’s exit from direct sales, and a new license deal with MAAB will shift manufacturing and marketing rights across Greater China with commercial rollout targeted for 2027, supported by fresh Phase III data showing superiority over palonosetron.

For its oncology therapy DARVIAS, approved in Japan for relapsed or refractory peripheral T-cell lymphoma, Solasia is expanding its global reach through licensing in South America and Eastern Europe, where new NDAs have been filed or accepted and a fresh MAP-based commercialization agreement has been signed. The company is also pursuing indication expansion into EBV-positive B-cell lymphoma and breast cancer, and continues to invest in earlier-stage nucleic acid, gene therapy, antibody modification, and diagnostic probe projects, underscoring a strategy to broaden its oncology pipeline and strengthen long-term growth prospects.

The most recent analyst rating on (JP:4597) stock is a Hold with a Yen29.00 price target. To see the full list of analyst forecasts on Solasia Pharma KK stock, see the JP:4597 Stock Forecast page.

Solasia Pharma Narrows Losses as Sales Rise but Withholds 2026 Forecast

Solasia Pharma reported a 35.4% year-on-year increase in consolidated sales to ¥429 million for the fiscal year ended December 31, 2025, while narrowing its operating loss to ¥861 million and net loss attributable to owners of the parent to ¥876 million. The company strengthened its financial position with total assets rising to ¥2,145 million, equity attributable to owners of the parent climbing to ¥1,752 million, and cash and cash equivalents increasing to ¥1,387 million on the back of positive financing cash flow, though it maintained a zero-dividend policy and withheld a forecast for 2026 due to difficulty in providing a reasonable outlook.

The most recent analyst rating on (JP:4597) stock is a Hold with a Yen29.00 price target. To see the full list of analyst forecasts on Solasia Pharma KK stock, see the JP:4597 Stock Forecast page.

Solasia Grants MAAB Exclusive China Rights to Sancuso in Sales Framework Overhaul

Solasia Pharma has signed a license agreement granting MAAB Pharma exclusive marketing and manufacturing rights for its antiemetic patch Sancuso in mainland China, Hong Kong, Macau and Taiwan, as part of a restructuring of its sales framework in the region. After the current commercialization agreement with Lee’s Pharmaceutical in mainland China expires at the end of 2026, sales activities will transfer to MAAB, which plans to establish local production to lower costs, while Solasia will receive staged contract payments tied to the business transfer and future royalties on sales, positioning MAAB as a key strategic partner for Solasia’s broader China business and potentially improving the product’s competitiveness and profitability in that market.

The most recent analyst rating on (JP:4597) stock is a Hold with a Yen29.00 price target. To see the full list of analyst forecasts on Solasia Pharma KK stock, see the JP:4597 Stock Forecast page.

Solasia Pharma Cuts FY2025 Sales Outlook on China Delays and License Changes

Solasia Pharma has revised downward its full-year earnings forecast for the fiscal year ending December 2025, cutting projected sales revenue by ¥900 million to ¥400 million. The revision is driven primarily by delays in recognizing product sales of Sancuso in China due to extended customs and testing procedures following a manufacturing site change, the termination of a license agreement with FIREBIRD BIOLOGICS that eliminates expected upfront and milestone payments for DARVIAS and Episil, and the decision to exclude from its outlook any revenue tied to yet-unconcluded technology transfer and commercial license agreements for Sancuso in China beyond 2026. In addition, the company will return part of unrecognized upfront revenue from a Chinese Episil license with GenSci, though this will not affect profit or loss, underscoring that the main impact of these changes is a near-term revenue shortfall rather than an immediate hit to reported earnings, and highlighting ongoing uncertainty around the timing and structure of Solasia’s China-related partnership income.