Sumitomo Dainippon Pharma Co Ltd (JP:4506)
:4506
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Sumitomo Dainippon Pharma Co
(4506)
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Rating:56Neutral
Price Target:
¥2,018.00
▲(8.82% Upside)
Action:ReiteratedDate:03/05/26
The score is primarily driven by improving but still volatile financial performance (strong TTM margins/FCF but inconsistent history) and weak technicals (below key moving averages with negative MACD). A low P/E meaningfully offsets these risks, supporting a mid-range overall score.
Positive Factors
Margin and free cash flow recovery
Sustained higher margins and positive free cash flow (FCF) improve internal funding for R&D, commercialization and debt reduction. FCF roughly tracking net income (0.88x) supports earnings quality and long-term reinvestment capacity, strengthening strategic flexibility.
Negative Factors
Pronounced financial volatility
Historic swings including a very large loss year and revenue variability reduce predictability of earnings and complicate long-range planning. Volatility can force defensive capital moves, delay R&D projects, and increase the likelihood of future financing needs or strategic trade-offs.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and free cash flow recovery
Sustained higher margins and positive free cash flow (FCF) improve internal funding for R&D, commercialization and debt reduction. FCF roughly tracking net income (0.88x) supports earnings quality and long-term reinvestment capacity, strengthening strategic flexibility.
Read all positive factors
Sumitomo Dainippon Pharma Co (4506) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥859.94B
Dividend YieldN/A
Average Volume (3M)5.45M
Price to Earnings (P/E)26.1
Beta (1Y)1.23
Revenue Growth29.92%
EPS GrowthN/A
CountryJP
Employees4,980
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)22.19
Shares Outstanding397,900,150
10 Day Avg. Volume5,265,230
30 Day Avg. Volume5,454,233
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)1.71
Price to Sales (P/S)0.73
P/FCF Ratio36.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)259.67
Revenue Forecast (FY)¥445.59B
Sumitomo Dainippon Pharma Co Business Overview & Revenue Model
Company Description
Sumitomo Pharma Co., Ltd. manufactures and sells pharmaceuticals, food ingredients and additives, veterinary medicines, and others in Japan, North America, China, and internationally. The company offers pharmaceutical products, such as therapeutic...
How the Company Makes Money
Sumitomo Dainippon Pharma generates revenue primarily through the sale of its pharmaceutical products, which include a diverse portfolio of prescription drugs and specialty medications. The company has established key revenue streams from its prop...
Sumitomo Dainippon Pharma Co Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 19, 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
62
Positive
Balance Sheet
55
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 453.39B | 398.83B | 314.56B | 555.54B | 560.03B | 515.95B |
| Gross Profit | 268.59B | 225.38B | 157.08B | 342.95B | 371.18B | 361.60B |
| EBITDA | 80.13B | 47.98B | 36.29B | 52.47B | 94.90B | 91.05B |
| Net Income | 110.09B | 23.63B | -314.97B | -74.51B | 56.41B | 56.22B |
Balance Sheet | ||||||
| Total Assets | 815.52B | 742.60B | 907.51B | 1.13T | 1.31T | 1.31T |
| Cash, Cash Equivalents and Short-Term Investments | 57.32B | 23.12B | 29.05B | 143.48B | 202.98B | 193.70B |
| Total Debt | 258.95B | 314.25B | 427.86B | 346.37B | 284.54B | 290.68B |
| Total Liabilities | 526.58B | 573.13B | 751.37B | 727.96B | 634.44B | 659.95B |
| Stockholders Equity | 288.94B | 169.48B | 156.06B | 406.75B | 607.89B | 580.57B |
Cash Flow | ||||||
| Free Cash Flow | 47.09B | 8.00B | -252.66B | 3.47B | 23.89B | 129.55B |
| Operating Cash Flow | 53.28B | 16.50B | -241.89B | 11.94B | 31.24B | 135.60B |
| Investing Cash Flow | 26.68B | 99.75B | 33.04B | -145.99B | -21.91B | -10.43B |
| Financing Cash Flow | -112.20B | -108.84B | 77.85B | 51.59B | -17.79B | -37.91B |
Sumitomo Dainippon Pharma Co Technical Analysis
Positive
1854.50
Price Trends
2230.57
Negative
2337.18
Negative
1865.19
Positive
Market Momentum
-107.43
Negative
49.26
Neutral
88.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4506, the sentiment is Positive. The current price of 1854.5 is below the 20-day moving average (MA) of 1943.10, below the 50-day MA of 2230.57, and below the 200-day MA of 1865.19, indicating a neutral trend. The MACD of -107.43 indicates Negative momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 88.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥3.09T | 8.09 | 12.22% | 2.22% | 4.48% | 11.08% | |
79 Outperform | ¥194.63B | 14.92 | 6.70% | 2.48% | 13.11% | 41.57% | |
77 Outperform | ¥361.49B | 9.44 | ― | 2.12% | 4.07% | 22.59% | |
70 Neutral | ¥9.26T | 18.42 | 0.54% | 4.11% | -2.84% | -88.29% | |
68 Neutral | ¥1.40T | 19.13 | 5.75% | 3.51% | 6.79% | 22.14% | |
56 Neutral | ¥859.94B | 26.11 | 48.92% | ― | 29.92% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4506
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Sumitomo Dainippon Pharma Co Corporate Events
Sumitomo Pharma Launches ‘Boost 2028’ Plan to Build on V-Shaped Recovery
Mar 2, 2026
Sumitomo Pharma has unveiled its FY2026–FY2028 growth strategy, “Boost 2028 – Accelerating Strong Sumitomo Pharma,” updating the earlier “Reboot 2027” plan after a V-shaped earnings recovery from a sharp FY2023 ...
Sumitomo Pharma Lifts Full-Year Profit Outlook on Strong GEMTESA Sales and Weaker Yen
Mar 2, 2026
Sumitomo Pharma has raised its full-year consolidated forecast for the fiscal year ending March 31, 2026, reflecting stronger-than-expected sales and currency tailwinds. The company now projects revenue of ¥449 billion, up 4.7% from its previ...
Sumitomo Pharma Files ¥140 Billion Shelf Registration to Fund Growth and Bolster Finances
Mar 2, 2026
Sumitomo Pharma has filed a shelf registration statement in Japan to issue up to 60 million new common shares, with a maximum issuance amount of ¥140 billion, allowing it to raise capital flexibly between March 2026 and March 2027. The compan...
Sumitomo Pharma’s iPS Cell Parkinson’s Therapy Heads to Key Japan Regulatory Review
Feb 13, 2026
Sumitomo Pharma Co., Ltd. and Tokyo-based RACTHERA Inc. have applied for manufacturing and marketing authorization in Japan for AMCHEPRY, an allogeneic iPS cell-derived dopaminergic neural progenitor cell therapy for improving motor function durin...
Sumitomo Pharma Posts Surging Profit and Higher Revenue in Q3 FY2025 Under IFRS
Jan 30, 2026
Sumitomo Pharma reported strong earnings momentum for the third quarter of the fiscal year ending March 31, 2026, with revenue rising to ¥347.7 billion from ¥293.2 billion year-on-year and core operating profit surging more than fourfold...
Sumitomo Pharma Outlines Q3 FY2025 Results With Caution on Forward-Looking Data
Jan 30, 2026
Sumitomo Pharma Co., Ltd. announced that President and CEO Toru Kimura held a conference on January 30, 2026, to discuss the company’s financial results for the third quarter of fiscal year 2025, covering the period from April 1 to December ...
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.