Daiichi Sankyo Earnings: Stronger Than Expected, and Full-Year Guidance Raised

Narrow-moat Daiichi Sankyo’s third-quarter results came in stronger than expected due to a jump in sales of influenza and COVID-19 products. The company also raised its full-year revenue guidance to JPY 1.58 billion from JPY 1.55 billion and full-year core operating profit guidance to JPY 180 million from JPY 155 billion. In addition to higher sales of Inavir (for influenza) and Daichirona (COVID vaccine), the revision includes foreign-exchange tailwinds. Operating profit margins for the quarter and in the full-year guidance are in line with our expectations.