Sosei Heptares bets ‘big in Japan’ on transformational growth

Sosei Heptares President and CEO Chris Cargill says 2023 was a transformational year for the business and predicts a handsome long-term payback from the July acquisitions of Idorsia Pharmaceuticals Japan Ltd (IPJ) and Idorsia Pharmaceuticals Korea Co., Ltd (IPK) to build a powerful new pharma business centred on Japan.

Unveiling the consolidated results for the year ended December 3, Cargill commented: “2023 has been a transformational year for Sosei Group and the progress made by our teams across all areas of the business has been exceptional.

“This progress is enabling the group to accelerate its development in 2024 as an integrated, technology powered, commercial-stage biopharmaceutical company focused on cutting-edge science and delivering life-changing medicines for patients in Japan and globally.

“We continue to accelerate business integration following the acquisition of IPJ and IPK, which has brought an exciting new dimension to our group including the potential for many strategic development and commercial opportunities.

“We embark on this next phase of our journey as a well-financed organisation and with a clear vision to create value for all our stakeholders.”

The pipeline has grown massively and the bottom line has to be taken in context given hefty investment in further broadening the portfolio and in R & D spend and acquisitions generally.

Revenue totalled $90.8 million, a fall of $27.7m year-on year, while R & D spend increased $14.9m to $71.7m. Black turned to red in terms of pre-tax profit – an $8.2m gain turning to a loss of $76m. Cash and equivalents were also cut to $347.9m, down by $159.1m – primarily due to the acquisition of Idorsia.