TOKYO, April 25, 2024 – Astellas Pharma Inc. (TSE: 4503, President and CEO: Naoki Okamura, “Astellas”) today announced that at the meeting of the Board of Directors held today, it decided to change the definition of core basis in consolidated financial statements from the fiscal year 2024 (FY2024) ending March 31, 2025 onward.
Astellas has been applying International Financial Reporting Standards to consolidated financial statements since FY2013, which ended March 31, 2014, and disclosing financial results on a core basis. Astellas will change the definition of core basis from FY2024 and will newly exclude amortisation of intangible assets, gain on divestiture of intangible assets, and share of profit (loss) of investments accounted for using the equity method from the financial results on a full basis as certain significant adjusted items defined by the company.
<New Definition of Core Basis>
The Company discloses financial results on a core basis as an indicator of its profitability. Certain significant adjusted items defined by the Company that are reported in financial results on a full basis are excluded from these financial results on a core basis. These adjusted items include amortisation of intangible assets, gain on divestiture of intangible assets, share of profit and loss of investments accounted for using equity method, impairment losses, gain/loss on sales of property, plant and equipment, restructuring costs, loss on disaster, a large amount of losses on compensation or settlement of litigations and other legal disputes, and certain other items defined by the Company.
<The background to the change>
As a result of the acquisition of Iveric Bio, the amortisation of intangible assets significantly increased, and the conventional definition could not appropriately reflect the profitability of Astellas, making it difficult to understand performance trends and compare with other companies. The new definition of core basis will function as an indicator that more accurately reflects Astellas’ profitability and facilitates easier comparison with global pharmaceutical companies from a financial standpoint.
About Astellas
Astellas Pharma Inc. is a pharmaceutical company conducting business in more than 70 countries around the world. We are promoting the Focus Area Approach that is designed to identify opportunities for the continuous creation of new drugs to address diseases with high unmet medical needs by focusing on Biology and Modality. Furthermore, we are also looking beyond our foundational Rx focus to create Rx+® healthcare solutions that combine our expertise and knowledge with cutting-edge technology in different fields of external partners. Through these efforts, Astellas stands on the forefront of healthcare change to turn innovative science into VALUE for patients. For more information, please visit our website at https://www.astellas.com/en.
Cautionary Notes
In this press release, statements made with respect to current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Astellas. These statements are based on management’s current assumptions and beliefs in light of the information currently available to it and involve known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: (i) changes in general economic conditions and in laws and regulations, relating to pharmaceutical markets, (ii) currency exchange rate fluctuations, (iii) delays in new product launches, (iv) the inability of Astellas to market existing and new products effectively, (v) the inability of Astellas to continue to effectively research and develop products accepted by customers in highly competitive markets, and (vi) infringements of Astellas’ intellectual property rights by third parties.
Information about pharmaceutical products (including products currently in development) which is included in this press release is not intended to constitute an advertisement or medical advice.
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