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Daiichi Sankyo Co Ltd 4568

Morningstar Rating
JPY 4,798.00 −174.00 (3.50%)
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Company Report

Daiichi Sankyo Antibody Drug Conjugate Platform Has Created Its First Winner in Enhertu

Narrow-moat Daiichi Sankyo is a Japanese drugmaker with a global footprint and cutting-edge development platform for antibody drug conjugates. As an established pharmaceutical company with a long history, it also has numerous lucrative business lines including generics, anticoagulants, painkillers, and heart medications. In 2019 it formed a partnership with AstraZeneca to co-develop and co-commercialize Enhertu and Dato-DXd, its two leading assets from its ADC platform. We expect its ADC platform and other pipeline assets to drive growth over the next 10 years.

Price vs Fair Value

4568 is trading at a 5% discount.
Price
JPY 4,822.00
Fair Value
JPY 1,276.00
Uncertainty
High
1-Star Price
JPY 9,768.00
5-Star Price
JPY 7,831.00
Economic Moat
Rlpbks
Capital Allocation
Tbvyczhyw

Bulls Say, Bears Say

Bulls

Daiichi Sankyo has a leading ADC platform, a cutting-edge modality for cancer treatments that improves upon the safety and efficacy of existing chemotherapy treatments.

Bears

After Enhertu and Dato-DXd, Daiichi Sankyo’s other ADCs are still early stage.

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News

Trading Information

Previous Close Price
JPY 4,972.00
Day Range
JPY 4,779.004,953.00
52-Week Range
JPY 3,566.005,173.00
Bid/Ask
JPY 4,787.00 / JPY 4,798.00
Market Cap
JPY 9.20 Tril
Volume/Avg
4.2 Mil / 4.5 Mil

Key Statistics

Price/Earnings (Normalized)
44.07
Price/Sales
6.35
Dividend Yield (Trailing)
0.70%
Dividend Yield (Forward)
1.21%
Total Yield
0.70%

Company Profile

Daiichi Sankyo was established by the merger of Daiichi Pharmaceuticals and Sankyo in 2005. As of 2021, approximately half of revenue comes from its Japan businesses, which will shrink in the future as the company expands its global footprint. Its primary growth driver is its leading platform of antibody drug conjugates. Its three lead ADCs are Enhertu (HER2), Dato-DXd (TROP2), I-DXd (B7-H3), HER3-DXd (HER3), and R-DXd (CDH6). Enhertu entered the clinic in 2015 and received its first U.S approval in December 2019 for third-line late-stage HER2-positive breast cancer. It is also approved for HER2-positive stomach cancers and HER2 mutant non-small cell lung cancer.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Growth
Total Number of Employees
17,435

Competitors

Valuation

Metric
4568
4519
AZN
Price/Earnings (Normalized)
44.0723.7918.83
Price/Book Value
6.016.355.41
Price/Sales
6.357.644.65
Price/Cash Flow
34.4028.7221.23
Price/Earnings
4568
4519
AZN

Financial Strength

Metric
4568
4519
AZN
Quick Ratio
2.743.540.58
Current Ratio
3.494.760.82
Interest Coverage
11.7613,439.495.15
Quick Ratio
4568
4519
AZN

Profitability

Metric
4568
4519
AZN
Return on Assets (Normalized)
7.33%18.73%11.55%
Return on Equity (Normalized)
13.01%23.33%30.14%
Return on Invested Capital (Normalized)
11.32%23.33%18.47%
Return on Assets
4568
4519
AZN
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