Solasia Pharma KK (4597) AI Stock Analysis

• Market Cap: €8.44B
• Dividend Yield: N/A
• Average Volume (3M): 8.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -48.95%
• EPS Growth: -42.99%
• Country: JP
• Employees: 23
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.34
• Shares Outstanding: 241,609,010
• 10 Day Avg. Volume: 18,589,640
• 30 Day Avg. Volume: 8,453,310
• PEG Ratio: 0.25
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.01
• 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

• Rating: 37 Underperform
• Price Target: ―

Solasia Pharma KK has a precarious financial position with ongoing losses and negative cash flow. The technical indicators show a bearish trend, adding to the challenges faced by the company. Valuation remains problematic with a negative P/E ratio. These factors combined reflect a low overall stock score, signaling significant risk and uncertainty for investors.

Solasia Pharma KK Business Overview & Revenue Model

Company Description

Solasia Pharma KK is a specialty pharmaceutical company based in Japan, primarily focused on the development and commercialization of innovative oncology therapies and supportive care products. The company aims to address unmet medical needs in the field of cancer treatment with a strong emphasis on the Asian market. Solasia Pharma engages in the research and development of new drug candidates and collaborates with global partners to bring these therapies to market.

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	329.00M	316.00M	617.00M	1.09B	559.00M	454.00M
Gross Profit	181.00M	185.00M	337.00M	662.00M	374.00M	245.00M
EBITDA	-1.74B	-1.75B	-635.00M	-1.94B	-1.92B	-3.62B
Net Income	-1.92B	-1.94B	-1.11B	-2.55B	-2.48B	-4.13B
Balance Sheet
Total Assets	1.32B	1.36B	2.23B	3.13B	3.14B	5.78B
Cash, Cash Equivalents and Short-Term Investments	1.06B	886.00M	728.00M	803.00M	714.00M	2.96B
Total Debt	17.00M	25.00M	60.00M	37.00M	84.00M	1.06B
Total Liabilities	461.00M	206.00M	354.00M	472.00M	557.00M	2.12B
Stockholders Equity	855.00M	1.16B	1.88B	2.66B	2.59B	3.65B
Cash Flow
Free Cash Flow	-870.00M	-1.03B	-359.00M	-2.48B	-2.64B	-2.96B
Operating Cash Flow	-658.00M	-1.03B	-359.00M	-2.07B	-2.47B	-2.79B
Investing Cash Flow	-1.00M	0.00	2.00M	-418.00M	-164.00M	-171.00M
Financing Cash Flow	429.00M	1.18B	275.00M	2.57B	361.00M	1.83B

Solasia Pharma KK Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.00
• 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 36 is above the 20-day moving average (MA) of 32.45, above the 50-day MA of 31.90, and below the 200-day MA of 38.28, indicating a neutral trend. The MACD of 1.46 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 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
4507	80 Outperform	¥2.24T	12.72	12.99%	2.27%	0.73%	7.75%
4519	79 Outperform	¥11.90T	29.03	22.80%	3.45%	17.96%	25.65%
4568	67 Neutral	$6.19T	21.28	17.60%	1.81%	17.77%	49.34%
4502	65 Neutral	¥6.96T	64.28	1.50%	4.46%	7.45%	-25.77%
Sector *	64 Neutral	¥343.99B	10.61	-2.88%	2.57%	11.80%	-6.84%
4506	62 Neutral	$370.28B	15.18	13.50%	―	26.79%	―
4597	37 Underperform	€8.44B	―	-143.23%	―	-48.95%	-42.99%

Solasia Pharma KK Corporate Events

Solasia Pharma Resumes SP-05 Development with New Fundraising

Solasia Pharma K.K. announced a fundraising initiative through the issuance of warrants to Macquarie Bank Limited, aiming to raise JPY 2,049 million. The funds will be used to resume the development of SP-05, a colorectal cancer treatment, after previous clinical trials did not meet primary endpoints. The decision to continue development follows a reanalysis by Isofol Medical AB, the licensor of SP-05, which led to the resumption of clinical trials. This move is expected to enhance Solasia’s position in the oncology market and potentially bring a new treatment option for colorectal cancer.

Solasia Pharma Announces Capital Reduction and Financial Adjustments

Solasia Pharma has announced a reduction in its capital stock and legal capital surplus, aiming to improve its financial flexibility and enable shareholder returns. These changes are part of an internal accounting adjustment and will not impact the total shares issued or owned by shareholders, but are designed to allow the company to better manage its capital policy and address a retained loss of 3,633 million yen as reported at the end of 2024.

Solasia Pharma Reports Impairment Loss and Earnings Shortfall for 2024

Solasia Pharma K.K. has announced an impairment loss for fiscal year 2024 due to challenges in securing a licensing agreement for DARVIAS® in China and limited market penetration for its current indication of peripheral T-cell lymphoma. This has resulted in a revaluation of intangible assets and a recorded impairment loss of 959 million yen, affecting their consolidated earnings, which fell short of previous forecasts.

Solasia Pharma Reports Fiscal Results and Product Pipeline Updates

Solasia Pharma K.K. has reported its consolidated financial results for the fiscal year ending December 31, 2024, along with updates on its major pipeline products. Sancuso® faced a significant decline in sales in China due to shipment constraints after transferring its manufacturing facility. On the other hand, DARVIAS® Injection received marketing approval in Japan, with Nippon Kayaku handling its sales, and efforts are underway to seek regulatory approval in South America, where HB Human BioScience is involved.

Solasia Pharma Reports Fiscal Year 2024 Financial Results

Solasia Pharma reported significant financial results for the fiscal year ending December 31, 2024, showing a decrease in revenue and an increase in operating losses compared to the previous year. The decline in revenue and increased losses suggest operational challenges, impacting the company’s financial health and positioning in the pharmaceutical industry.