Daiichi Sankyo Co Ltd 4568

Morningstar Rating
¥2,707.50 −33.00 (1.20%)
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Company Report

Daiichi Sankyo's Antibody-Drug Conjugate Platform Shines but Faces Increasing Competition

Narrow-moat Daiichi Sankyo is a Japanese drugmaker with a global footprint and a 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 and will co-develop and co-commercialize Enhertu and Datroway, its two leading assets from its ADC platform. In 2023, it formed another partnership with Merck & Co. to co-develop and co-commercialize three other ADCs: I-DXd, HER3-DXd, and R-DXd. 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 LOCK|gHB@r premium.
Price
¥2,740.50
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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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, Datroway, and I-DXd, Daiichi Sankyo’s other ADCs are still early stage, and the competitive landscape for ADCs is heating up.

News

Trading Information

Previous Close Price
¥2,740.50
Day Range
¥2,703.50–2,751.00
52-Week Range
¥2,390.00–4,178.00
Bid/Ask
¥2,707.50 / ¥2,708.00
Shares Outstanding
1.82B
Market Cap
¥4.93T
Volume/Avg
3M / 6M

Key Statistics

Price/Earnings (Normalized)
18.69
Price/Sales
2.39
Dividend Yield (Trailing)
3.25%
Dividend Yield (Forward)
3.65%
Dividend Payment Schedule
Jun, Dec
Total Yield
6.13%

Company Profile

Daiichi Sankyo was established by the merger of Daiichi Pharmaceuticals and Sankyo in 2005. As of 2024, approximately one quarter 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, or ADCs. Its lead ADCs are Enhertu (HER2), Datroway (TROP2), I-DXd (B7-H3), HER3-DXd (HER3), and R-DXd (CDH6). Enhertu was first approved in the US in December 2019, and Datroway was first approved in January 2025.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Core
Total Number of Employees
20,171

Competitors

Valuation

Metric
4568
AZN
4519
Price/Earnings (Normalized)
18.6914.7121.17
Price/Book Value
2.934.925.01
Price/Sales
2.394.117.57
Price/Cash Flow
38.0216.2719.10
Price/Earnings
4568
AZN
4519

Financial Strength

Metric
4568
AZN
4519
Quick Ratio
1.460.663.43
Current Ratio
2.420.894.35
Interest Coverage
28.887.999,780.06
Quick Ratio
4568
AZN
4519

Profitability

Metric
4568
AZN
4519
Return on Assets (Normalized)
—9.00%19.65%
Return on Equity (Normalized)
—21.69%23.42%
Return on Invested Capital (Normalized)
—14.36%23.42%
Return on Assets
4568
AZN
4519

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