Consolidated financial results and position

2016/9 2017/9 2018/9 2019/9 2020/9
Net Sales
62,039 65,282 69,869 74,373 76,098
Operating income
3,363 3,897 4,321 4,405 2,605
Ratio of operating income
5.4% 6.0% 6.2% 5.9% 3.4%
Ordinary profits
2,989 3,732 4,061 3,841 2,867
Ratio of ordinary profits
4.8% 5.7% 5.8% 5.2% 3.8%
Profit attributable to owners of parent(¥million) 878 1,550 1,487 1,822 1,505
Total assets
59,104 65,605 78,034 80,179 89,517
Shareholders’ equity
21,397 23,608 33,536 32,994 34,011
Ratio of Shareholders’
equity (%)
35.5% 34.9% 28.9% 27.8% 26.4%

Net Sales

Operating income and ratio of operating income

Ordinary profits and ratio of ordinary profits

Profit attributable to owners of parent

Total Assets

Shareholders equity and ratio of shareholders equity

Earnings Forecast

In the pharmaceutical industry, while creation of innovative drugs is anticipated through technological innovation and industry-government-academia collaboration towards providing personalized medicine or “precision medicine”, there is increasing pressure to reduce drug prices such as annual NHI drug price revision starting in 2021.

Pharmaceutical companies are focusing on expanding their development pipelines through M&A, and they are also developing pharmaceuticals with new drug discovery platform technologies and providing total care for diseases from prevention to diagnosis, treatment, and prognosis. New technologies called the Fourth Industrial Revolution such as artificial intelligence (AI) and IoT are bringing significant changes to the society. Digital treatment and on-line medical consultation are introduced in the healthcare arena, and as people’s attitudes toward medicine and health change, industry, government, academia and civil society are collaborating to achieve innovation to address the decreasing birthrate and aging population.

The global pandemic of COVID-19 has a broad impact ranging from social economy to personal values, and it is believed to accelerate the digitalization and innovation in the healthcare sector.

CMIC Group is executing the focus activities in the mid-term business plan (FY2019-2021) to adapt ourselves to the rapidly changing external environment in a timely and flexible manner. While promoting various measures including 1) Acceleration of PVC model, 2) Promoting globalization, and 3) Creation of Healthcare business, we have started the “Healthcare Revolution” project to transform ourselves from business model centering on pharmaceutical drugs to creation of new healthcare business. We will continue to create new businesses that will contribute to maintaining and improving personal health, and utilize our talents in the healthcare arena.

In the next fiscal year, while we expect the impact of COVID-19 to continue to some extent, assuming that our business environment will gradually recover following the progress of treatment drug and vaccine development. We expect both sales and operating income to increase compared with this fiscal year.

Net Sales 76,098 80,000 5.1%
Operating Income 2,605 3,300 26.6%
Ordinary Profits 2,867 3,100 8.1%
Profit attributable to owners of parent 1,505 1,650 9.6%

Net Sales

Operating income and ratio of operating income

Forecast for FY ending Sept. 2021 (by segment)

CRO Business

Sales and operating income growth is expected for CRO business due to increase in clinical research and post-marketing surveillance, steady performance in clinical trials, and strong order intake for non-clinical operations.

CDMO Business

Sales and operating income are expected to increase due to the increase of contract manufacturing volume in Japan and acquisition of new projects in the United States, despite the upfront investment costs for the contract manufacturing of biopharmaceutical API that started in July 2020.

CSO Business

Sales figures are expected to be at the same level as this fiscal year.  As for operating income, the margin went up due to limited MR activities and curtailed expenses in this fiscal year following the COVID-19 outbreak.  However, operating income is expected to go down in the next fiscal year assuming that we will return to normal activities.

Healthcare Business

Despite the upfront investment required for new businesses, thanks to the increased number of clinical researches for SMO operations, steady performance in clinical trials, and growth in new business, we expect an increase in both sales and operating income.

Innovative Pharma Model Business

Sales figures are expected to be at the same level as this fiscal year, but operating income is expected to go down due to promotion of R&D activities for orphan drugs.

2020/9 results
2021/9 forecast
CRO Business Sales 34,242 36,100 5.4%
Operating Income 5,052 5,550 9.9%
CDMO Business Sales 20,832 22,100 6.1%
Operating Income (412) 100
CSO Business Sales 8,626 8,500 (1.5)%
Operating Income 834 650 (22.2)%
Healthcare Business Sales 9,903 10,750 8.5%
Operating Income 583 700 20.0%
IPM Business Sales 3,395 3,450 1.6%
Operating Income 169 0
Adjustments Sales (901) (900)
Operating Income (3,621) (3,700)
Consolidated Sales 76,098 80,000 5.1%
Operating Income 2,605 3,300 26.6%

Dividend Forecast

Interim Dividend (yen) Year End Dividend (yen) Annual (yen) Dividend Payout
2021/9 Forecast 5.00 22.00 27.00 29.6
2020/9 Results 5.00 20.00 25.00 30.0

See “Dividends” in the Stock Information for details of past.

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