Update: Intangible Asset Impairment, Contingent Consideration Fair Value, FY2023 Financial Forecast Revision

Today, Astellas Pharma Inc. (TSE: 4503, President and CEO: Naoki Okamura, “Astellas”) announced an anticipated booking of approximately ¥70.0 billion in the fourth quarter of fiscal year 2023. This booking pertains to an impairment loss for intangible assets and a change in fair value of contingent consideration, categorized as other expenses. Consequently, the financial forecast for fiscal year 2023 (full basis), initially announced on February 5, 2024, has been adjusted.

Impairment Loss for Intangible Assets:

  1. AT808: Astellas will record an impairment loss of about ¥40.0 billion for the intangible asset associated with AT808, utilized for the treatment of Friedreich’s Ataxia.
  2. EVRENZOTM: Following a review of plans for EVRENZOTM, a treatment for anemia of chronic kidney disease in Japan and Europe, Astellas will register an impairment loss of approximately ¥16.0 billion for the intangible asset linked to EVRENZOTM.

Change in Fair Value of Contingent Consideration:

Updates to the clinical development plan for zolbetuximab for pancreatic adenocarcinoma and fluctuations in foreign currency exchange rates will result in Astellas booking approximately ¥8.0 billion in changes in the fair value of contingent consideration.

Revision of Financial Forecasts:

The consolidated financial forecasts for the fiscal year ending March 31, 2024, have been revised due to the aforementioned impairment loss and fair value changes. The core basis and dividend forecast remain unchanged.

Revised Financial Forecast (Full Basis):

(Millions of yen)

MetricPrevious Forecast (A)Revised Forecast (B)Change (B-A)Change (%)
Operating profit83,00013,000-70,000-84.3
Profit before tax82,00012,000-70,000-85.4
Profit for the year58,0003,000-55,000-94.8
Profit attributable to owners of the parent58,0003,000-55,000-94.8
Basic earnings per share (yen)32.341.67

Astellas Pharma Inc. operates in over 70 countries worldwide, focusing on the continuous creation of new drugs to address diseases with high unmet medical needs. Through the Focus Area Approach, Astellas identifies opportunities for innovation in Biology and Modality. Additionally, the company aims to create Rx+® healthcare solutions by leveraging expertise and technology partnerships.

Cautionary Notes:

This press release contains forward-looking statements regarding Astellas’ future performance. Actual results may differ due to various factors including economic conditions, regulatory changes, and market competition. Additionally, information about pharmaceutical products is provided for informational purposes and does not constitute medical advice.

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