Seikagaku Posts 4QFY16 Revenue

Seikagaku posted 4QFY16 revenue of ¥7.5BB (~US $75.6MM), -6.6% vs. the prior year. (Period ended 3/31/17)

Quarterly performance highlights:

• Revenue decline attributed to impact of yen appreciation and government-dictated drug price reductions in Japan, despite higher sales volumes in Japan and the U.S.
• Domestically, deliveries of ARTZ to medical institutions increased slightly due to strong marketing and new syringes introduced in 2Q16, though sales to marketing partner decreased due to price reductions
• Ex-Japan, U.S. Gel One sales remain strong, though sales to partner fell slightly due to yen appreciation and decline in local prices, despite an increase in shipment volume
• U.S. SUPARTZ FX sales declined only slightly amid competition from other multi-injection products, and sales to partner were impacted by yen appreciation
• China ARTZ sales to partner decreased on governmental price controls and yen appreciation
• Initiated a Japan Phase III clinical trial in 1Q to study SI-613 hyaluronic acid + NSAID to treat knee OA, partnered with Ono Pharmaceutical for co-development and marketing in the region

Source: Seikagaku Corporation