Daiichi Sankyo (4568 JP): Starts FY25 on Firm Note; Enhertu Flying Higher Highs; Guidance Reaffirmed

489 Views31 Jul 2024 17:43

Boomeranged on Tue, 10 Sep 2024 14:19

Daiichi Sankyo shares plunged due to mixed clinical trial result of Dato-DXd in lung cancer. While Dato-DXd showed a 2.3-month improvement in overall survival (OS) compared to the current standard of care chemotherapy, it did not reach statistical significance. In a particular sub-group of patients Dato-DXd did not show an OS improvement. However, long-term growth story still intact. Buy the dip.

SUMMARY

Daiichi Sankyo (4568 JP) announced better-than-expected Q1FY25 result, with all key parameters exceeding expectation. Q1 revenue increased 24% to ¥436B, mainly driven by 59% growth in Enhertu sales to ¥130B.
For its approved indications, Enhertu maintained #1 market share for new patients in U.S. The drug is expected to have blockbuster status in both US and Europe this year.
Despite a good progress in Q1FY25, especially on profitability front, Daiichi Sankyo has reaffirmed FY25 guidance. Better-than-anticipated Enhertu revenue and Fx should lead to guidance revision later this year.

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