Daiichi Sankyo Earnings: Full-Year Guidance Raised on Higher Expectations For Enhertu and Lixiana

Narrow-moat Daiichi Sankyo’s second-quarter earnings were in line with our expectations. Management revised its full-year guidance revenue upward by 5% since its April forecast and core operating profit was up by 24%. These changes were driven by favorable foreign exchange and sales expansion of Enhertu and Lixiana. Still, they were partially tempered by decreased sales of GE injectables and the assumption that the launch of HER3-DXd will no longer occur in this fiscal year. We maintain our fair value estimate of JPY 5,500 per share and view the shares as slightly undervalued at the current market price.