Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>Favorable Fx contributed positively in 9MFY25. On a Fx neutral basis, revenue growth is only 3% YoY, while adjusted operating profit growth is flat YoY.</li>
<li>Quality related expenses mar amidst another round of recall by FDA. China drags the profitability. </li>
<li>Olympus revised FY25 revenue guidance from ¥1,009B to ¥997.5B. Downward revision in profits too.</li>
</ul>


Favorable Fx contributed positively in 9MFY25. On a Fx neutral basis, revenue growth is only 3% YoY, while adjusted operating profit growth is flat YoY.
Quality related expenses mar amidst another round of recall by FDA. China drags the profitability. 
Olympus revised FY25 revenue guidance from ¥1,009B to ¥997.5B. Downward revision in profits too.


Olympus Corp (7733 JP): Fx Holds Turf in 9MFY25 Amid Subdued China; FY25 Guidance Revised Downward

<ul>
<li>
<a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a> shares retreated 17% over the last one month, dragged by resignation of the CEO and weak H1FY25 result. No definite time for CEO succession is announced.</li>
<li>Favorable Fx inflated H1FY25 result. On a Fx neutral basis, revenue growth is only 3% YoY, while adjusted operating profit growth is just 4% YoY.</li>
<li>Olympus has guided for 9% YoY revenue growth to ¥1,009B in FY25, indicating H2FY25 revenue of ¥535B (-9% YoY). ESD revenue guidance seems to be aggressive amid current macro backdrop.</li>
</ul>



Olympus Corp (7733 JP) shares retreated 17% over the last one month, dragged by resignation of the CEO and weak H1FY25 result. No definite time for CEO succession is announced.
Favorable Fx inflated H1FY25 result. On a Fx neutral basis, revenue growth is only 3% YoY, while adjusted operating profit growth is just 4% YoY.
Olympus has guided for 9% YoY revenue growth to ¥1,009B in FY25, indicating H2FY25 revenue of ¥535B (-9% YoY). ESD revenue guidance seems to be aggressive amid current macro backdrop.


Olympus Corp (7733 JP): One-Off Events Boost H1FY25 Result; Not Optimistic About FY25 Guidance

Thematic (Sector/Industry)

<ul>
<li>U.S. has implemented a universal baseline tariff of 10%, effective April 5. Japan faces 24% reciprocal tariff from April 9.</li>
<li>In 2023, Japan exported pharmaceutical products worth $6.34B (~43% of total exports) to the U.S.</li>
<li>Japanese pharma and medical devices companies have significant revenue exposure to the U.S.</li>
</ul>


U.S. has implemented a universal baseline tariff of 10%, effective April 5. Japan faces 24% reciprocal tariff from April 9.
In 2023, Japan exported pharmaceutical products worth $6.34B (~43% of total exports) to the U.S.
Japanese pharma and medical devices companies have significant revenue exposure to the U.S.


US Tariff Impact on APAC Healthcare: Focus Country- JAPAN

<ul>
<li>Shionogi is acquiring Torii Pharmaceutical and pharmaceutical business of Japan Tobacco. Daiichi Sankyo’s Enhertu meets main goal in the neoadjuvant setting (before surgery) in early-stage breast cancer trial.</li>
<li>HK inno.N received approval for the domestic phase 3 clinical trial of obesity drug candidate. Neuren Pharmaceuticals’ Daybue recorded $84.6M revenue in the U.S. in 1Q25, up 11% YoY.</li>
<li>Biocon secured multiple market access agreements for Yesintek, its biosimilar to Stelara. Lupin received FDA approval for antiretroviral agent raltegravir tablets for the treatment of human immunodeficiency virus (HIV-1) infection.</li>
</ul>


Shionogi is acquiring Torii Pharmaceutical and pharmaceutical business of Japan Tobacco. Daiichi Sankyo’s Enhertu meets main goal in the neoadjuvant setting (before surgery) in early-stage breast cancer trial.
HK inno.N received approval for the domestic phase 3 clinical trial of obesity drug candidate. Neuren Pharmaceuticals’ Daybue recorded $84.6M revenue in the U.S. in 1Q25, up 11% YoY.
Biocon secured multiple market access agreements for Yesintek, its biosimilar to Stelara. Lupin received FDA approval for antiretroviral agent raltegravir tablets for the treatment of human immunodeficiency virus (HIV-1) infection.


APAC Healthcare Weekly (May 11)- Shionogi, Daiichi Sankyo, HK Inno, Neuren, Biocon, Aster DM, Lupin

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/asahi-intecc-co-ltd" target="_blank" rel="noopener">7747 Asahi Intec</a> announced FY06/25 OP guidance of Y25.2bn, close to street expectations, pointing to substantial upside. GPM guidance has increased and continuation of strong 4Q YoY sales is expected.</li>
<li>Seven days of short interest outstanding could lead to a short squeeze; Earnings briefing tomorrow reinforcing these trends should be a further catalyst for upside.</li>
<li>With short interest now low and limited potential for further gains after the recent rebound, <a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" rel="noopener">7733 Olympus</a> appears to be losing momentum, especially with China sales continuing to flag.</li>
</ul>



7747 Asahi Intec announced FY06/25 OP guidance of Y25.2bn, close to street expectations, pointing to substantial upside. GPM guidance has increased and continuation of strong 4Q YoY sales is expected.
Seven days of short interest outstanding could lead to a short squeeze; Earnings briefing tomorrow reinforcing these trends should be a further catalyst for upside.
With short interest now low and limited potential for further gains after the recent rebound, 7733 Olympus appears to be losing momentum, especially with China sales continuing to flag.


Long 7747 Asahi Intec | Short 7733 Olympus

Japan

OLYMPUS CORPORATION manufactures optoelectronic products. The Company's products include cameras, video sets, endoscopes for medicine and industrial use, microscopes, analytical equipment, office communication systems, and laseroptical scanners.

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Olympus (7733 JT)

Olympus Corp (7733 JP): Fx Holds Turf in 9MFY25 Amid Subdued China; FY25 Guidance Revised Downward

Favorable foreign exchange boosts revenue growth for Olympus in 9MFY25, but quality expenses and China market challenges lead to profit stagnation...

Tina Banerjee

Olympus Corp (7733 JP): One-Off Events Boost H1FY25 Result; Not Optimistic About FY25 Guidance

Olympus recorded H1FY25 revenue growth of only 3% YoY on Fx neutral basis, while adjusted operating profit growth is just 4% YoY. FY25 guidance...

Tina Banerjee

US Tariff Impact on APAC Healthcare: Focus Country- JAPAN

Trump is expected to sign an executive order to lower prescription drug prices. The question about the feasibility of implementation of Trump’s...

Tina Banerjee

APAC Healthcare Weekly (May 11)- Shionogi, Daiichi Sankyo, HK Inno, Neuren, Biocon, Aster DM, Lupin

Shionogi is acquiring Torii Pharma. Daiichi Sankyo’s Enhertu meets key goal in breast cancer trial. HK inno got domestic approval for P3 trial of...

Tina Banerjee

Long 7747 Asahi Intec | Short 7733 Olympus

Asahi Intec announces strong FY06/25 guidance, potential for short squeeze and upside; Olympus losing momentum with declining domestic sales.

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Olympus Corp (7733 JP): Fx Holds Turf in 9MFY25 Amid Subdued China; FY25 Guidance Revised Downward

​Favorable foreign exchange boosts revenue growth for Olympus in 9MFY25, but quality expenses and China market challenges lead to profit stagnation...

Tina Banerjee

Olympus Corp (7733 JP): One-Off Events Boost H1FY25 Result; Not Optimistic About FY25 Guidance

​Olympus recorded H1FY25 revenue growth of only 3% YoY on Fx neutral basis, while adjusted operating profit growth is just 4% YoY. FY25 guidance...

Tina Banerjee

US Tariff Impact on APAC Healthcare: Focus Country- JAPAN

Trump is expected to sign an executive order to lower prescription drug prices. The question about the feasibility of implementation of Trump’s...

Tina Banerjee

APAC Healthcare Weekly (May 11)- Shionogi, Daiichi Sankyo, HK Inno, Neuren, Biocon, Aster DM, Lupin

Shionogi is acquiring Torii Pharma. Daiichi Sankyo’s Enhertu meets key goal in breast cancer trial. HK inno got domestic approval for P3 trial of...

Tina Banerjee

Long 7747 Asahi Intec | Short 7733 Olympus

​Asahi Intec announces strong FY06/25 guidance, potential for short squeeze and upside; Olympus losing momentum with declining domestic sales.

Andrew Jackson

Favorable foreign exchange boosts revenue growth for Olympus in 9MFY25, but quality expenses and China market challenges lead to profit stagnation...

Olympus recorded H1FY25 revenue growth of only 3% YoY on Fx neutral basis, while adjusted operating profit growth is just 4% YoY. FY25 guidance...

Asahi Intec announces strong FY06/25 guidance, potential for short squeeze and upside; Olympus losing momentum with declining domestic sales.