Solasia Pharma KK (4597) AI Stock Analysis

• Market Cap: ¥7.79B
• Dividend Yield: N/A
• Average Volume (3M): 41.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 243.16%
• EPS Growth: -23.00%
• Country: JP
• Employees: 23
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.62
• Shares Outstanding: 269,209,000
• 10 Day Avg. Volume: 52,616,870
• 30 Day Avg. Volume: 41,982,023
• PEG Ratio: -0.08
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 22.63
• P/FCF Ratio: -6.92
• 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: 43 Neutral
• Price Target: ¥28.00 ▲(3.70% Upside)

The score is primarily weighed down by very large ongoing operating losses and negative free cash flow, despite improving TTM revenue and strong gross margins. Technicals also remain weak with the stock below major moving averages and a negative MACD. Valuation is pressured by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Low Leverage

Low leverage reduces solvency risk and provides financial flexibility, allowing the company to manage its capital structure more effectively.

Strategic Partnerships

Strategic partnerships enhance market reach and product distribution, potentially leading to increased revenue and market share in the oncology sector.

Revenue Growth

Consistent revenue growth and strong gross margins indicate effective pricing and product demand, supporting long-term business sustainability.

Negative Factors

Ongoing Operating Losses

Persistent operating losses highlight a cost structure that exceeds revenue, posing a challenge to achieving profitability and financial stability.

Cash Burn

Negative cash flow indicates ongoing cash burn, which could lead to funding challenges if revenue growth does not accelerate significantly.

China Market Challenges

Delays and regulatory challenges in China impact revenue recognition and highlight risks in international market expansion strategies.

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

Solasia Pharma KK faces significant financial challenges, with persistent losses reflected in the income statement and cash flow statement. While the balance sheet shows a healthy equity base, the company's inability to generate positive cash flow or profits raises concerns about long-term sustainability. The pharmaceutical industry is highly competitive, and the company needs to improve its operational efficiency and revenue generation to bolster its financial health.

Income Statement

Solasia Pharma KK has experienced declining revenue over the past years, with a significant drop in 2024. The company has been unable to achieve profitability, as evidenced by negative net profit margins and EBIT margins. The negative EBITDA margin further highlights ongoing operational challenges. The revenue has shown substantial negative growth year-over-year.

Balance Sheet

The company's balance sheet shows a relatively strong equity position with a high equity ratio, indicating a low reliance on debt. However, the debt-to-equity ratio has increased slightly, suggesting rising leverage. Return on equity remains negative due to continued net losses.

Cash Flow

Solasia Pharma KK's cash flow statement reveals negative free cash flow, with a substantial decrease in free cash flow over time. The operating cash flow to net income ratio is unfavorable due to negative cash flow from operations. The company is heavily reliant on financing activities to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	326.00M	316.00M	617.00M	1.09B	559.00M	454.00M
Gross Profit	213.00M	185.00M	337.00M	662.00M	374.00M	245.00M
EBITDA	-1.73B	-1.75B	-635.00M	-1.94B	-1.92B	-3.62B
Net Income	-1.80B	-1.94B	-1.11B	-2.55B	-2.48B	-4.13B
Balance Sheet
Total Assets	2.34B	1.36B	2.23B	3.13B	3.14B	5.78B
Cash, Cash Equivalents and Short-Term Investments	1.83B	886.00M	728.00M	803.00M	714.00M	2.96B
Total Debt	104.00M	25.00M	60.00M	37.00M	84.00M	1.06B
Total Liabilities	543.00M	206.00M	354.00M	472.00M	557.00M	2.12B
Stockholders Equity	1.80B	1.16B	1.88B	2.66B	2.59B	3.65B
Cash Flow
Free Cash Flow	-676.00M	-1.03B	-359.00M	-2.48B	-2.64B	-2.96B
Operating Cash Flow	-464.00M	-1.03B	-359.00M	-2.07B	-2.47B	-2.79B
Investing Cash Flow	-79.00M	0.00	2.00M	-418.00M	-164.00M	-171.00M
Financing Cash Flow	1.34B	1.18B	275.00M	2.57B	361.00M	1.83B

Solasia Pharma KK Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.00
• 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:4597, the sentiment is Negative. The current price of 27 is below the 20-day moving average (MA) of 29.20, below the 50-day MA of 31.14, and below the 200-day MA of 34.46, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4597.

Solasia Pharma KK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4539	64 Neutral	¥5.95B	11.86	―	3.21%	4.25%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4892	49 Neutral	¥5.78B	-6.01	―	―	56.17%	-11.63%
4586	44 Neutral	¥7.01B	-4.64	―	―	-52.41%	-80.31%
4597	43 Neutral	¥7.79B	-3.58	-90.96%	―	243.16%	-23.00%
4582	42 Neutral	¥5.41B	-0.96	―	―	-50.27%	-3.33%
4883	42 Neutral	¥5.29B	-2.21	―	―	―	47.43%

Solasia Pharma KK Corporate Events

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.

Solasia Pharma Expands Global Reach with Strategic Partnerships

Solasia Pharma K.K. has announced its consolidated financial results for the third quarter of the fiscal year ending December 31, 2025, and provided updates on its major pipeline products. The company has made significant strides in expanding its market presence through strategic partnerships and licensing agreements for its products, Sancuso® and DARVIAS®. These developments include regulatory approvals and new licensing agreements across various regions, enhancing Solasia’s global footprint in the oncology sector.

Solasia Pharma Reports Nine-Month Financial Results with Sales Growth Amidst Challenges

Solasia Pharma K.K. reported its consolidated financial results for the nine months ended September 30, 2025, showing a slight increase in sales by 12.6% year-on-year. Despite the sales growth, the company continues to face challenges with operating losses, as indicated by a negative operating profit and profit before tax. The financial position shows an increase in total assets and equity, suggesting a stable financial foundation. The announcement highlights the company’s ongoing efforts to improve its financial performance, which is crucial for its stakeholders and market positioning in the competitive pharmaceutical industry.