Medrx Co., Ltd. (4586) AI Stock Analysis

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Medrx Co., Ltd.

(TSE/TYO:4586)

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Rating:37Underperform

Price Target:JPY 39.00▲(2.63% Upside)

Action:downgraded

Date:11/03/26

The overall score is at the minimum of 37, reflecting a convergence of severe risks. The company is deeply unprofitable with a -732% net loss margin and persistent negative cash flows, which are the most significant factors weighing on the score. Technicals reinforce this weakness, with the stock in a clear downtrend and deeply oversold. The negative P/E ratio and lack of dividends offer no valuation support. The only positive is a strong, debt-free balance sheet, but it is insufficient to lift the score given the fundamental and market challenges.

Positive Factors

Revenue reboundThe sharp 2025 revenue rebound shows that the company can expand its top line when development or commercialization activity improves. If this recovery is sustained, a larger revenue base could help absorb fixed operating costs and provide greater support for future product and partnership monetization.

Negative Factors

Persistent deep lossesThe company remains deeply unprofitable despite its strong gross margin, with expenses far exceeding the current revenue base. The deterioration in net margin suggests that revenue growth has not yet produced operating leverage, leaving profitability dependent on a substantial and sustained improvement in scale or cost structure.

Medrx Co., Ltd. (4586) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.77B
Dividend Yield: ―
Average Volume (3M): 849.12K
Price to Earnings (P/E): -2.7
Beta (1Y): 1.41
Revenue Growth: 167.44%
EPS Growth: 49.38%
Country: Japan
Employees: 21
Sector: Healthcare
Sector Strength: 51
Industry: Drug Manufacturers - Specialty & Generic

Medrx Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 2002 and headquartered in Higashikagawa, Japan, MedRx Co., Ltd is a pharmaceutical firm focused on developing drug formulations. The company primarily provides pharmaceutical products in Japan that leverage transdermal absorption syste...

How the Company Makes Money

Medrx primarily makes money by monetizing its transdermal drug delivery technologies and related pharmaceutical products. Key revenue streams typically include: (1) licensing/out-licensing of developed transdermal formulations or drug candidates to p...

Medrx Co., Ltd. Financial Statement Overview

Summary

Financial performance is severely constrained by deep unprofitability and high cash burn. The income statement score of 15 reflects a -732% net loss margin and declining revenue, while the cash flow score of 20 highlights consistent negative free cash flow. The balance sheet score of 80 is a mitigating factor due to zero debt and strong equity, but it cannot offset the fundamental weakness in earnings and cash generation.

Income Statement

15Very Negative

Balance Sheet

80Positive

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	121.00M	128.08M	257.92M	29.53M	59.48M	8.35M
Gross Profit	109.78M	113.01M	219.19M	-18.43M	10.45M	-54.25M
EBITDA	-868.59M	-928.13M	-754.62M	-888.00M	-1.05B	-1.00B
Net Income	-858.85M	-937.37M	-806.76M	-932.90M	-1.11B	-1.06B
Balance Sheet
Total Assets	1.74B	2.16B	2.27B	2.05B	1.40B	2.11B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.75B	1.98B	1.72B	994.02M	1.70B
Total Debt	0	0	0	0	0	0
Total Liabilities	149.79M	108.54M	107.00M	127.52M	185.56M	153.10M
Stockholders Equity	1.59B	2.05B	2.17B	1.92B	1.21B	1.96B
Cash Flow
Free Cash Flow	0	-970.86M	-803.00M	-913.76M	-1.08B	-926.23M
Operating Cash Flow	0	-888.11M	-803.00M	-913.00M	-1.07B	-923.69M
Investing Cash Flow	0	-82.75M	-3.15M	-759.00K	-1.96M	-2.54M
Financing Cash Flow	0	745.09M	1.07B	1.64B	356.31M	815.91M

Medrx Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price38.00

Price Trends

50DMA53.76Negative

100DMA57.31Negative

200DMA74.23Negative

Market Momentum

MACD-4.89Positive

RSI22.91Positive

STOCH29.60Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4586, the sentiment is Negative. The current price of 38.00 is below the 20-day moving average (MA) of 45.50, below the 50-day MA of 53.76, and below the 200-day MA of 74.23, indicating a bearish trend. The MACD of -4.89 indicates Positive momentum. The RSI at 22.91 is Positive, neither overbought nor oversold. The STOCH value of 29.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4586.

Medrx Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:4586 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:4539	47Neutral	JPY 5.52B	-11.50	―	3.30%	0.31%	-194.72%
JP:4883	43Neutral	JPY 3.13B	-1.45	―	―	―	25.34%
JP:4892	42Neutral	JPY 5.30B	-6.32	―	―	364.72%	18.43%
JP:4597	39Underperform	JPY 6.55B	-8.22	-53.67%	―	109.82%	61.98%
JP:4582	38Underperform	JPY 5.25B	-0.65	―	―	-30.58%	6.93%
JP:4586	37Underperform	JPY 2.77B	-2.67	―	―	167.44%	49.38%

* Healthcare Sector Average

Performance Comparison

JP:4586 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4586	Medrx Co., Ltd.	38.00	-90.00	-70.31%
JP:4597	Solasia Pharma KK	25.00	-8.00	-24.24%
JP:4539	Nippon Chemiphar Co., Ltd.	1515.00	34.18	2.31%
JP:4582	Symbio Pharmaceuticals Limited	59.00	-47.00	-44.34%
JP:4883	Modalis Therapeutics Corporation	30.00	-37.00	-55.22%
JP:4892	Cyfuse Biomedical K.K.	514.00	-67.00	-11.53%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 03, 2026

Medrx Co., Ltd. AI Stock Analysis