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

Medrx Co., Ltd.

(TSE/TYO:4586)

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Rating:41Neutral

Price Target:JPY 45.00▼(-4.26% Downside)

Action:upgraded

Date:10/17/26

The overall score of 41 is very low, driven primarily by the company's critical financial state. The most significant factor is the combination of deep operating losses and high cash burn, which overshadows a strong, debt-free balance sheet. This is compounded by persistent technical weakness, with the stock trading below all major moving averages, and a negative P/E ratio that underscores the lack of earnings. The company's equity provides a runway, but the absence of a clear path to profitability and negative market momentum present substantial risks.

Positive Factors

Debt-free balance sheetA zero-debt balance sheet limits fixed financing obligations and reduces solvency pressure during periods of operating weakness. This gives Medrx greater flexibility to preserve resources, pursue development activities, and manage volatility without the added burden of significant interest or refinancing requirements.

Negative Factors

Persistent deep lossesMedrx’s revenue growth has not yet translated into profitability, with the net margin deteriorating substantially in 2025. Losses of this scale indicate that operating expenses remain far above the current revenue base, weakening earnings visibility and making a durable path to self-sustaining profits uncertain.

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

Market Cap: JPY 3.29B
Dividend Yield: ―
Average Volume (3M): 855.65K
Price to Earnings (P/E): -3.3
Beta (1Y): 1.37
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 strong positive, but it is insufficient to offset the critical weaknesses 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 Price47.00

Price Trends

50DMA58.58Negative

100DMA58.79Negative

200DMA77.80Negative

Market Momentum

MACD-3.14Positive

RSI27.88Positive

STOCH14.29Positive

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 47.00 is below the 20-day moving average (MA) of 53.65, below the 50-day MA of 58.58, and below the 200-day MA of 77.80, indicating a bearish trend. The MACD of -3.14 indicates Positive momentum. The RSI at 27.88 is Positive, neither overbought nor oversold. The STOCH value of 14.29 is Positive, 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
JP:4597	52Neutral	JPY 7.37B	-8.11	-53.67%	―	32.42%	61.00%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:4892	50Neutral	JPY 5.64B	-6.87	―	―	364.72%	18.43%
JP:4539	47Neutral	JPY 5.47B	-44.12	―	3.30%	0.31%	-194.72%
JP:4883	42Neutral	JPY 3.18B	-1.17	―	―	―	-5.66%
JP:4586	41Neutral	JPY 3.29B	-3.30	―	―	167.44%	49.38%
JP:4582	39Underperform	JPY 3.72B	-0.48	―	―	-30.58%	6.93%

* 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.	47.00	-82.00	-63.57%
JP:4597	Solasia Pharma KK	27.00	-5.00	-15.63%
JP:4539	Nippon Chemiphar Co., Ltd.	1515.00	-100.80	-6.24%
JP:4582	Symbio Pharmaceuticals Limited	44.00	-71.00	-61.74%
JP:4883	Modalis Therapeutics Corporation	28.00	-47.00	-62.67%
JP:4892	Cyfuse Biomedical K.K.	559.00	-26.00	-4.44%

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: Oct 18, 2026

Medrx Co., Ltd. AI Stock Analysis