Sumitomo Dainippon Pharma Co Ltd (JP:4506)
:4506
Want to see JP:4506 full AI Analyst Report?
Top Page
Sumitomo Dainippon Pharma Co
(4506)
Select Model
Select Model
Rating:58Neutral
Price Target:
¥1,494.00
▼(-19.44% Downside)
Action:Reiterated
Date:05/15/26
The score is primarily driven by improved 2026 financial performance, but it is tempered by a clear downtrend and weak momentum in the technical indicators. Valuation is supportive due to the low P/E, though the absence of dividend data limits the valuation picture.
Positive Factors
Improved Free Cash Flow
The 2026 rebound in free cash flow and high conversion from net income improves the firm's ability to self‑fund R&D, commercial launches and debt service. Reliable internal cash generation enhances strategic flexibility for multi‑year programs and reduces dependence on external financing.
Negative Factors
Volatile Financials
Large swings in revenue, earnings, leverage and cash flows across 2023–2026 reduce predictability for multi‑year investors. This volatility complicates forecasting, constrains long‑term planning and raises execution risk for multi‑year R&D investments and commercialization strategies.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Free Cash Flow
The 2026 rebound in free cash flow and high conversion from net income improves the firm's ability to self‑fund R&D, commercial launches and debt service. Reliable internal cash generation enhances strategic flexibility for multi‑year programs and reduces dependence on external financing.
Read all positive factors
Sumitomo Dainippon Pharma Co (4506) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥679.39B
Dividend YieldN/A
Average Volume (3M)5.45M
Price to Earnings (P/E)5.6
Beta (1Y)1.25
Revenue Growth13.66%
EPS Growth352.17%
CountryJP
Employees4,980
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)268.99
Shares Outstanding449,204,560
10 Day Avg. Volume5,265,230
30 Day Avg. Volume5,454,233
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.82
Price to Sales (P/S)1.82
P/FCF Ratio12.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,500.00Price Target Upside-19.12% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)212.2
Revenue Forecast (FY)¥527.11B
Sumitomo Dainippon Pharma Co Business Overview & Revenue Model
Company Description
Sumitomo Pharma Co., Ltd. is a global company involved in the creation, production, and sale of a variety of products, including human pharmaceuticals, food ingredients and additives, and veterinary medicines. Its operations span across Japan, Nor...
How the Company Makes Money
Sumitomo Dainippon Pharma primarily makes money by selling prescription pharmaceuticals. Revenue is generated from (1) product sales in Japan through the marketing of branded prescription drugs to healthcare providers and institutions, with sales ...
Sumitomo Dainippon Pharma Co Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Negative
The earnings call highlighted promising developments in the oncology and regenerative medicine pipelines but was overshadowed by significant financial losses, decreased revenue across all segments, and underperformance of key products, leading to a revised downward financial forecast. The call focused on strategic adjustments to address market challenges and improve profitability.Positive Updates
Development Progress in iPS Cell-Derived Therapies
Significant progress in clinical development in regenerative medicine, particularly in Parkinson's disease using iPS cell-derived dopaminergic progenitor cells. The University of California San Diego began a study in November 2023, with ongoing trials in Japan.
Negative Updates
Significant Revenue Decline
Revenue was JPY 235 billion, a decrease of JPY 225.2 billion compared to the same period last year, with declines across all segments, including Japan, North America, and Asia.
Read all updates
Q3-2024 Updates
Positive
Negative
Development Progress in iPS Cell-Derived Therapies
Significant progress in clinical development in regenerative medicine, particularly in Parkinson's disease using iPS cell-derived dopaminergic progenitor cells. The University of California San Diego began a study in November 2023, with ongoing trials in Japan.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call for Sumitomo Pharma, several key financial metrics and strategic adjustments were discussed. Revenue for Q3 2023 was reported at JPY 235 billion, which marked a significant decrease of JPY 225.2 billion from the same period in the previous year. The decline was attributed to reduced revenue across all segments, including Japan, North America, and Asia. Despite a decrease in SG&A expenses and some operating income from the sale of shares in Sumitomo Pharma Animal Health, the core operating profit decreased by JPY 139.3 billion, resulting in a core operating loss of JPY 96.4 billion. The company also recorded a JPY 20.5 billion nonrecurring expense related to restructuring in North America, contributing to an operating loss of JPY 117.7 billion. Additionally, profit before taxes saw a year-on-year decrease of JPY 107.4 billion, resulting in a quarterly loss of JPY 105.2 billion. Consequently, the net profit attributable to owners of the parent decreased significantly, resulting in a loss of JPY 117.7 billion. The full-year financial forecast was revised downward, with expectations for revenue at JPY 317 billion, a reduction of JPY 45 billion from previous forecasts. The forecasted core operating profit was expected to see a reduction of JPY 72 billion, projecting a loss of JPY 134 billion. The company is also anticipating a decrease in profit attributable to owners by JPY 61 billion, forecasting a loss of JPY 141 billion. The underperformance was largely due to the North American segment, where key products like ORGOVYX, MYFEMBREE, and GEMTESA fell short of their sales plans.Sumitomo Dainippon Pharma Co Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 453.29B | 398.83B | 314.56B | 555.54B | 560.03B |
| Gross Profit | 256.89B | 225.38B | 157.08B | 342.95B | 371.18B |
| EBITDA | 71.13B | 47.98B | 36.29B | 52.47B | 94.90B |
| Net Income | 106.86B | 23.63B | -314.97B | -74.51B | 56.41B |
Balance Sheet | |||||
| Total Assets | 804.57B | 742.60B | 907.51B | 1.13T | 1.31T |
| Cash, Cash Equivalents and Short-Term Investments | 44.31B | 23.12B | 29.05B | 143.48B | 202.98B |
| Total Debt | 217.19B | 314.25B | 427.86B | 346.37B | 284.54B |
| Total Liabilities | 512.10B | 573.13B | 751.37B | 727.96B | 634.44B |
| Stockholders Equity | 292.47B | 169.48B | 156.06B | 406.75B | 607.89B |
Cash Flow | |||||
| Free Cash Flow | 67.11B | 8.00B | -252.66B | 3.47B | 23.89B |
| Operating Cash Flow | 71.72B | 16.50B | -241.89B | 11.94B | 31.24B |
| Investing Cash Flow | 22.55B | 99.75B | 33.04B | -145.99B | -21.91B |
| Financing Cash Flow | -91.27B | -108.84B | 77.85B | 51.59B | -17.79B |
Sumitomo Dainippon Pharma Co Technical Analysis
Neutral
1854.50
Price Trends
1820.47
Negative
2061.21
Negative
2008.88
Negative
Market Momentum
-97.33
Negative
43.02
Neutral
18.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4506, the sentiment is Neutral. The current price of 1854.5 is above the 20-day moving average (MA) of 1557.85, above the 50-day MA of 1820.47, and below the 200-day MA of 2008.88, indicating a bearish trend. The MACD of -97.33 indicates Negative momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 18.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4506.
Sumitomo Dainippon Pharma Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.50T | 11.80 | 12.22% | 2.22% | 14.01% | 20.33% | |
67 Neutral | ¥270.42B | 9.09 | ― | 2.12% | 6.58% | -8.74% | |
65 Neutral | ¥1.07T | 27.82 | 5.75% | 3.51% | 4.56% | -16.55% | |
58 Neutral | ¥679.39B | 5.63 | 48.92% | ― | 13.66% | 352.17% | |
58 Neutral | ¥156.03B | 11.45 | 6.70% | 2.48% | 10.28% | 20.78% | |
58 Neutral | ¥8.01T | 41.08 | 0.54% | 4.11% | -1.66% | 78.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4506
Sumitomo Dainippon Pharma Co
1,514.50
610.50
67.53%
JP:4523
Eisai Co
3,806.00
-85.21
-2.19%
JP:4547
Kissei Pharmaceutical Co
3,820.00
-226.70
-5.60%
JP:4507
Shionogi & Co
2,844.50
409.28
16.81%
JP:4502
Takeda Pharmaceutical Co
5,050.00
856.42
20.42%
JP:4516
Nippon Shinyaku Co., Ltd.
4,015.00
575.48
16.73%
Sumitomo Dainippon Pharma Co Corporate Events
Sumitomo Pharma Cancels Planned Third-Party Share Allotment After Allottee Declines
May 22, 2026
Sumitomo Pharma said that SMBC Nikko Securities Inc., the planned allottee for a third-party share issuance linked to its recent public offering and over-allotment program, has decided not to subscribe to any of the new shares by the May 25, 2026 ...
Sumitomo Pharma Profit Surges on Higher Revenue and Cost Controls
May 13, 2026
Sumitomo Pharma reported a sharp improvement in earnings for the year ended March 31, 2025, with revenue rising to ¥453.3 billion and operating profit jumping to ¥107.3 billion, driven by higher sales and significantly lower selling, gen...
Sumitomo Pharma Issues Cautious FY2025 Results Conference Materials
May 13, 2026
Sumitomo Pharma has released materials for its FY2025 financial results conference, covering the period from April 1, 2025 to March 31, 2026, led by President and CEO Toru Kimura. The company emphasizes that all forecasts, projections, and develop...
Sumitomo Pharma Ends Major Equity Offering, Withdraws Share Issuance Shelf
Apr 27, 2026
Sumitomo Pharma has withdrawn its previously filed shelf registration in Japan for issuing new shares of common stock, following the completion of the planned equity offering under that framework. The withdrawal reflects that the company has alrea...
Sumitomo Pharma Sets Terms for Over ¥100 Billion Equity Offering
Apr 20, 2026
Sumitomo Pharma Co., Ltd. has set the terms for a major equity financing, determining the issue and selling prices for a public offering of 51,304,400 new common shares at 1,990 yen per share, raising just over 102 billion yen in gross proceeds. T...
Sumitomo Pharma Refinances Guaranteed Debt With New Bridge Loan
Apr 8, 2026
Sumitomo Pharma has decided to refinance its existing borrowings through a new bridge loan facility, replacing debt previously guaranteed by parent Sumitomo Chemical. The move is tied to its recently announced issuance of new shares and secondary ...
Sumitomo Pharma Launches Major Share Offering to Strengthen Financial Base
Apr 8, 2026
Sumitomo Pharma Co., Ltd. has approved a major equity financing move, resolving to issue 51,304,400 new common shares through a combined Japanese public offering and international offering. The transaction is designed to reinforce both its earning...
Sumitomo Pharma to Book ¥48.3 Billion Dividend as Non-Operating Income With No Group Profit Impact
Mar 25, 2026
Sumitomo Pharma Co., Ltd. said it will record 48.34 billion yen in dividend income as non-operating income in its non-consolidated financial statements for the fiscal year ending March 31, 2026, following a dividend decision by its Swiss subsidiar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.