Seikagaku Reports FY 2Q18 Revenue of ¥7,030, -12% vs. FY 2Q17

Seikagaku continues to be challenged by a sharp decline in Japanese domestic sales due to the impact of National Health Insurance (NHI) drug price reductions implemented in April 2018. The company also faces increased competition and tightening reimbursement requirements on its U.S. hyaluronic acid injectable treatment sales. Sales of Gel-One, a single-injection joint function improving agent, decelerated while sales of SUPARTZ FX, a 5-injection joint function improving agent, softened.

Somewhat offsetting these declines are increased sales in both urban and rural areas of China as well as a newly launched treatment for lumbar disc herniation, HERNICORE, that began phased rollout on August 1, 2018. The company’s ARTZ product decreased only slightly due to sales expansion measures undertaken by their sales partner.

Seikagaku’s 2Q18 and YTD sales and growth on an as-reported basis is as follows. The company’s fiscal year 2018 runs from April 1, 2018 through March 31, 2019.

Source: Seikagaku; All revenue figures presented in USD $MM using constant currency.

Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.