Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Hisamitsu Pharmaceutical Co / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a> reported revenue growth of 8% y/y and 26% q/q to ¥33B in Q2FY23, mainly driven by a 14% y/y 47% q/q increase in OTC business.</li>
<li>This year, the company received FDA approval for Xelstrym transdermal system for ADHD. Xelstrym is the first-and-only FDA-approved transdermal amphetamine patch.  </li>
<li>With the resumption of sporting/outdoor events in Japan, Salonpas is expected to continue its growth trajectory. For FY23, Hisamitsu is targeting Salonpas revenue of ¥32.5 billion (+4.5% y/y).</li>
</ul>



Hisamitsu Pharmaceutical Co (4530 JP) reported revenue growth of 8% y/y and 26% q/q to ¥33B in Q2FY23, mainly driven by a 14% y/y 47% q/q increase in OTC business.
This year, the company received FDA approval for Xelstrym transdermal system for ADHD. Xelstrym is the first-and-only FDA-approved transdermal amphetamine patch.  
With the resumption of sporting/outdoor events in Japan, Salonpas is expected to continue its growth trajectory. For FY23, Hisamitsu is targeting Salonpas revenue of ¥32.5 billion (+4.5% y/y).


Hisamitsu Pharmaceutical (4530 JP): Set to Benefit from Roaring OTC Business and New Rx Drug Launch

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>Legal and regulatory changes have spawned cannabis companies, focused on cannabis-based medical and recreational products and the development of new breeds of crop </li>
<li>In Cannabis innovations <a href="https://www.smartkarma.com/entities/philip-morris-international" target="_blank" data-smartkarma-citation="entities:13328:1" rel="noopener">Philip Morris International (PM US)</a>, <a href="https://www.smartkarma.com/entities/canopy-growth-corp" target="_blank" data-smartkarma-citation="entities:25083:1" rel="noopener">Canopy Growth (WEED CN)</a>, <a href="https://www.smartkarma.com/entities/jazz-pharmaceuticals-plc" target="_blank" data-smartkarma-citation="entities:15881:1" rel="noopener">Jazz Pharmaceuticals (JAZZ US)</a><a href="https://www.smartkarma.com/entities/merck-co-inc" target="_blank" data-smartkarma-citation="entities:1130:1" rel="noopener">Merck &amp; Co Inc. (MRK US)</a> and <a href="https://www.smartkarma.com/entities/takeda-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:11747:1" rel="noopener">Takeda Pharmaceutical (4502 JP)</a> lead</li>
<li>In overall plant-based extracts innovations <a href="https://www.smartkarma.com/entities/jazz-pharmaceuticals-plc" target="_blank" data-smartkarma-citation="entities:15881:1" rel="noopener">Jazz Pharmaceuticals (JAZZ US)</a>, <a href="https://www.smartkarma.com/entities/eid-parry-india-ltd" target="_blank" data-smartkarma-citation="entities:6925:1" rel="noopener">Eid Parry India (EID IN)</a>, <a href="https://www.smartkarma.com/entities/abbott-laboratories" target="_blank" data-smartkarma-citation="entities:11987:1" rel="noopener">Abbott Laboratories (ABT US), </a>Indena, Mars Incorporated, and Liveleaf are the leaders.</li>
</ul>


Legal and regulatory changes have spawned cannabis companies, focused on cannabis-based medical and recreational products and the development of new breeds of crop 
In Cannabis innovations Philip Morris International (PM US), Canopy Growth (WEED CN), Jazz Pharmaceuticals (JAZZ US)Merck &amp; Co Inc. (MRK US) and Takeda Pharmaceutical (4502 JP) lead
In overall plant-based extracts innovations Jazz Pharmaceuticals (JAZZ US), Eid Parry India (EID IN), Abbott Laboratories (ABT US), Indena, Mars Incorporated, and Liveleaf are the leaders.


Insights from Data Mining Technical Publications - Plant Extracts Including from Cannabis

<ul>
<li>Sawai Pharmaceutical’s in-house expansion plan, coupled with its recent acquisition of a production facility will enhance annual production capacity by 48% in multiple stages by 2030.</li>
<li>Capacity expansion will help the company to achieve its aim of market share expansion amid a shortage of generic drug supply in Japan.</li>
<li>Through H1 FY22, the company has achieved 51% and 58% of full-year’s revenue and core operating profit target for Japan, respectively.</li>
</ul>


Sawai Pharmaceutical’s in-house expansion plan, coupled with its recent acquisition of a production facility will enhance annual production capacity by 48% in multiple stages by 2030.
Capacity expansion will help the company to achieve its aim of market share expansion amid a shortage of generic drug supply in Japan.
Through H1 FY22, the company has achieved 51% and 58% of full-year’s revenue and core operating profit target for Japan, respectively.


Sawai Pharmaceutical: Big Capacity Expansion Planned Amid Supply Shortages to Drive Market Share

<ul>
<li>For the near-term, focus will be on the marketing partnership for ATS, attention deficit hyperactivity disorder treatment patch. FDA action date is in late December.</li>
<li>Lower domestic sales of OTC pharmaceuticals due to the lack of sports events remains the major downside risk for Hisamitsu. Revenue from its largest selling Rx brand is also declining.</li>
<li>Management reiterated FY22 guidance and announced a buyback plan worth ¥12 billion.</li>
</ul>


For the near-term, focus will be on the marketing partnership for ATS, attention deficit hyperactivity disorder treatment patch. FDA action date is in late December.
Lower domestic sales of OTC pharmaceuticals due to the lack of sports events remains the major downside risk for Hisamitsu. Revenue from its largest selling Rx brand is also declining.
Management reiterated FY22 guidance and announced a buyback plan worth ¥12 billion.


Hisamitsu Pharmaceutical (4530 JP): Focus Shifts to ADHD Treatment Patch and Other Upcoming Launches

<p>Hisamitsu Pharmaceutical is promoting a patch treatment culture globally. The company is the global leader in OTC topical analgesics patch market. The shares plunged 22% in last one-year, underperforming Nikkei 225, which gained 19%. Hisamitsu shares are trading near 52-week low. However, it will be wise not to indulge in bottom fishing, as the company is facing near-term headwinds for its mainstay products. This insight has analyzed the risks being faced by its key products as well as upside risks arising from new products. Investors should wait for Q2 earnings announcement before taking any positions on the stock.</p>

Hisamitsu Pharmaceutical is promoting a patch treatment culture globally. The company is the global leader in OTC topical analgesics patch market. The shares plunged 22% in last one-year, underperforming Nikkei 225, which gained 19%. Hisamitsu shares are trading near 52-week low. However, it will be wise not to indulge in bottom fishing, as the company is facing near-term headwinds for its mainstay products. This insight has analyzed the risks being faced by its key products as well as upside risks arising from new products. Investors should wait for Q2 earnings announcement before taking any positions on the stock.

Hisamitsu Pharmaceutical (4530 JP): Avoid as More Pain Ahead

Japan

HISAMITSU PHARMACEUTICAL CO., INC. produces and sells pharmaceutical products. The Company's main product is anti-inflammatory analgesic plasters and poultices sold under the brand name Salonpas.  Hisamitsu Pharmaceutical exports its products to North America and Southeast Asia.  The Company also researches and develops antibacterial products through its related company, RRF.

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Hisamitsu Pharmaceutical Co (4530 JP)

Hisamitsu Pharmaceutical (4530 JP): Set to Benefit from Roaring OTC Business and New Rx Drug Launch

Hisamitsu’s OTC topical analgesic patch brand Salonpas reported accelerated double-digit growth in Q2. The company got FDA approval for one new...

Tina Banerjee

Insights from Data Mining Technical Publications - Plant Extracts Including from Cannabis

Herbal medicinal and nutraceutical extracts are seen as instruments to maintain health and treat some conditions. Cannabis, in particular, will see...

Pyari Menon

Hisamitsu Pharmaceutical (4530 JP): Focus Shifts to ADHD Treatment Patch and Other Upcoming Launches

While our bear case still holds good for the company, near-term focus is now shifting to new launches and upcoming approvals. Hisamitsu is expected...

Tina Banerjee

Hisamitsu Pharmaceutical (4530 JP): Avoid as More Pain Ahead

Shares of Hisamitsu is trading near 52-week low. However, investors should avoid the stock ahead of its Q2 results announcement due to near-term...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hisamitsu Pharmaceutical (4530 JP): Set to Benefit from Roaring OTC Business and New Rx Drug Launch

Hisamitsu’s OTC topical analgesic patch brand Salonpas reported accelerated double-digit growth in Q2. The company got FDA approval for one new...

Tina Banerjee

Insights from Data Mining Technical Publications - Plant Extracts Including from Cannabis

Herbal medicinal and nutraceutical extracts are seen as instruments to maintain health and treat some conditions. Cannabis, in particular, will see...

Pyari Menon

Sawai Pharmaceutical: Big Capacity Expansion Planned Amid Supply Shortages to Drive Market Share

By chalking out a huge capacity expansion plan and new product launches, Sawai is expected to enhance market share in Japan generic drug market,...

Tina Banerjee

Hisamitsu Pharmaceutical (4530 JP): Focus Shifts to ADHD Treatment Patch and Other Upcoming Launches

While our bear case still holds good for the company, near-term focus is now shifting to new launches and upcoming approvals. Hisamitsu is expected...

Tina Banerjee

Hisamitsu Pharmaceutical (4530 JP): Avoid as More Pain Ahead

Shares of Hisamitsu is trading near 52-week low. However, investors should avoid the stock ahead of its Q2 results announcement due to near-term...

Tina Banerjee