Shionogi has lifted its full-year profit guidance as expected royalties from its HIV treatment surpass prior expectations.

The Japanese pharmaceutical company raised its full-year operating profit by 5.7% to ¥185 billion ($1.2 billion), beating analyst estimates.

The group’s Dovato HIV treatment has top market share in Europe and is expected to continue expanding, CEO Isao Teshirogi said at a Monday briefing. Shionogi’s HIV portfolio includes the preventive drug Apretude and the treatment therapies Cabenuva and Dovato.

A stronger-than-expected performance of its overseas businesses also contributed to the improved prospects. Second-quarter revenue at its U.S. and Europe units rose by 42% and 19%, respectively.

Shionogi now plans to accelerate its expansion in Europe and the U.S., while pursuing full-scale growth of its new drug business in China. New growth areas include sleep apnea, pompe disease, hearing loss, immunology and allergy, according to a Monday statement.

The U.S. Food and Drug Administration last month accepted Shionogi’s Ensitrelvir review application for COVID-19 preventative oral medicine. The drug is also under regulatory review by the European Medicines Agency.

If Ensitrelvir can get the FDA’s approval, it will “open up a new sales angle,” said Iwai Cosmo Securities analyst Shoichi Arisawa.

The company also plans to strengthen its production system and overseas manufacturing capabilities, said Teshirogi. “It may be better to conduct development in Japan and production in the U.S.”

“Tariffs won’t have a major impact, but if the most-favored-nation pricing is introduced, I think the consequences could be quite serious,” Teshirogi added.

U.S. President Donald Trump said in a Truth Social post last month that companies building pharmaceutical manufacturing plants in the U.S. would be exempted from the policy, though he offered no further details.