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Shionogi & Co (JP:4507)
:4507

Shionogi & Co (4507) AI Stock Analysis

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JP

Shionogi & Co

(OTC:4507)

Rating:80Outperform
Price Target:
¥2,713.00
▲(11.03%Upside)
Shionogi & Co receives a strong overall score of 80, driven by robust financial performance and attractive valuation. The company's effective cash flow management and strategic growth initiatives further contribute to its positive outlook. Technical analysis and earnings call insights provide additional support, despite some challenges in cost management.
Positive Factors
Acquisition
One of the key benefits of JT Pharma acquisition is to gain additional small molecule-based drug discovery research capability and capacity.
Antibiotic Sales
Our antibiotic, Fetroja, has been growing strongly in the US, +38% YoY.
HIV Royalty
HIV royalty grew strongly partly thanks to foreign exchange effects.
Negative Factors
Analyst Rating
Analyst rates Shionogi Underperform with significant downside potential.
Financial Performance
Shionogi's FY24 top and bottom lines were a slight miss versus consensus and its guidance.
Revenue Goals
There is no organic way to fill the gap for their FY25 revenue target.

Shionogi & Co (4507) vs. iShares MSCI Japan ETF (EWJ)

Shionogi & Co Business Overview & Revenue Model

Company DescriptionShionogi & Co., Ltd. is a leading Japanese pharmaceutical company specializing in the research, development, and commercialization of pharmaceutical products. Founded in 1878 and headquartered in Osaka, Japan, Shionogi focuses on a broad range of therapeutic areas, including infectious diseases, pain management, and metabolic disorders, with a strong emphasis on innovative medicines. The company's portfolio includes prescription drugs, over-the-counter products, and diagnostics, catering to both domestic and international markets.
How the Company Makes MoneyShionogi & Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include prescription medications, particularly those targeting infectious diseases such as HIV and influenza, which are a significant focus due to Shionogi's expertise in antiviral therapies. Additionally, Shionogi earns income from over-the-counter products and diagnostics. Partnerships and collaborations with other pharmaceutical companies and research institutions also contribute to its earnings, enabling Shionogi to expand its research capabilities and market reach. Licensing agreements for its proprietary technologies and joint ventures further enhance its revenue potential. The company's strategic focus on innovation and expanding its international presence supports its financial growth.

Shionogi & Co Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q3-2024)
|
% Change Since: 1.58%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the HIV and overseas business segments, with significant advancements in product launches and expansion. However, this was tempered by declines in overall sales revenue, increased costs, and the dissolution of a key joint venture in China.
Q3-2024 Updates
Positive Updates
Strong Growth in HIV Business
The HIV franchise grew significantly, with royalty income increasing by JPY12.3 billion compared to the third quarter of last year. The LA formulation treatment increased by 43.4% year-on-year.
Overseas Business Expansion
Cefiderocol sales increased by 39.6% in the United States and 25.6% in Europe year-on-year. The number of countries where it is sold increased to 25.
Stable Domestic Infectious Disease Business
Sales of influenza and COVID-19 treatment drugs like Xofluza expanded in Q3 due to the spread of influenza in December.
Launch of New Products
The insomnia treatment drug, QUVIVIQ, was launched on December 19, marking a new sales record.
Negative Updates
Decline in Total Sales Revenue
Sales revenue was JPY333.6 billion, down JPY3.2 billion from last year's JPY336.8 billion, mainly affected by a one-time payment recorded last year.
Increased Costs and Expenses
The cost of goods increased by 8.6% year-on-year, and research and development expenses increased by 9.4% year-on-year.
Dissolution of Joint Venture in China
The joint venture with Ping An in China was dissolved due to changes in the business environment and strategy review.
Company Guidance
In the third quarter of fiscal year 2024, Shionogi & Co., Ltd. reported a sales revenue of JPY333.6 billion, a slight decrease of JPY3.2 billion year-on-year, primarily due to a one-time payment of JPY25 billion recorded in the previous year. However, excluding this payment, revenue increased by JPY21.8 billion, driven by a significant growth in royalty income and overseas business, notably the HIV franchise, which grew by JPY12.3 billion. Operating profit also saw an increase of JPY15.5 billion when excluding the one-time payment. Profit before tax reached JPY155.9 billion, with profit attributable to owners of the parent at JPY133.8 billion, marking an increase of JPY6.6 billion year-on-year. The company highlighted the stabilization of its domestic infectious disease business and expressed optimism in achieving the full-year forecast, bolstered by the success of its COVID-19 and influenza treatments, Xofluza and Xocova, as well as the launch of new products like QUVIVIQ. The yen's depreciation contributed to exchange gains, further supporting financial outcomes. Additionally, Shionogi emphasized its commitment to cost management and strategic R&D investments to sustain growth across its business segments.

Shionogi & Co Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
431.86B435.08B426.68B335.14B297.18B333.37B
Gross Profit
368.45B369.09B364.44B279.72B244.65B276.59B
EBIT
153.96B171.46B149.00B110.31B117.44B130.63B
EBITDA
191.79B217.81B176.41B143.42B158.67B174.47B
Net Income Common Stockholders
168.61B162.03B184.97B114.19B111.86B122.19B
Balance SheetCash, Cash Equivalents and Short-Term Investments
305.58B358.09B563.36B465.18B418.32B380.02B
Total Assets
1.52T1.42T1.31T1.15T998.99B871.53B
Total Debt
23.06B11.62B9.41B6.67B7.99B8.15B
Net Debt
-282.52B-346.47B-299.81B-247.75B-268.19B-200.71B
Total Liabilities
153.98B164.36B189.92B157.32B134.44B106.92B
Stockholders Equity
1.35T1.24T1.10T975.66B846.11B764.56B
Cash FlowFree Cash Flow
189.90B126.02B140.68B70.50B76.09B120.17B
Operating Cash Flow
206.82B154.28B177.87B102.07B109.04B131.94B
Investing Cash Flow
-114.34B5.92B-48.29B-96.20B-5.26B-29.14B
Financing Cash Flow
-79.37B-126.85B-84.12B-36.62B-43.89B-88.17B

Shionogi & Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2443.50
Price Trends
50DMA
2331.20
Positive
100DMA
2275.79
Positive
200DMA
2194.52
Positive
Market Momentum
MACD
30.51
Negative
RSI
62.77
Neutral
STOCH
90.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4507, the sentiment is Positive. The current price of 2443.5 is above the 20-day moving average (MA) of 2333.08, above the 50-day MA of 2331.20, and above the 200-day MA of 2194.52, indicating a bullish trend. The MACD of 30.51 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 90.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4507.

Shionogi & Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥2.15T12.2012.99%2.67%0.73%7.75%
71
Outperform
$1.13T24.435.34%4.20%6.42%11.00%
70
Outperform
$321.81B13.707.90%1.81%10.09%63.28%
69
Neutral
$255.38B7.8111.16%3.01%20.05%94.28%
65
Neutral
¥6.81T62.831.50%4.71%7.45%-25.77%
57
Neutral
$324.59B13.5213.50%26.79%
54
Neutral
$5.31B3.29-45.39%2.79%16.77%-0.07%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4507
Shionogi & Co
2,443.50
401.26
19.65%
JP:4506
Sumitomo Dainippon Pharma Co
804.00
453.00
129.06%
JP:4540
Tsumura & Co
3,332.00
-588.78
-15.02%
JP:4530
Hisamitsu Pharmaceutical Co
4,078.00
338.84
9.06%
JP:4523
Eisai Co
3,948.00
-2,701.06
-40.62%
JP:4502
Takeda Pharmaceutical Co
4,295.00
240.83
5.94%

Shionogi & Co Corporate Events

Shionogi Amends Tender Offer for Torii Amid Patent Lawsuit
Jun 4, 2025

Shionogi & Co., Ltd. announced an amendment to its tender offer for shares of Torii Pharmaceutical Co., Ltd. due to a patent infringement lawsuit involving Torii’s oral antipruritus medication, REMITCH®. Despite the legal proceedings, Torii’s stance on the tender offer remains unchanged, as the financial implications of the lawsuit are still uncertain.

The most recent analyst rating on (JP:4507) stock is a Hold with a Yen2750.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi’s Naldemedine Gains Approval in China for Opioid-Induced Constipation
May 30, 2025

Shionogi & Co., Ltd. announced the acceptance of its New Drug Application for naldemedine, a treatment for opioid-induced constipation, in China. This approval is expected to enhance pain management options in China, where current treatments are limited, and improve the quality of life for patients. The drug, already available in several regions, demonstrated significant efficacy in a Phase III trial in China. Following approval, Shionogi China Co., Ltd. will handle sales through an exclusive agreement with Chia Tai Tianqing Pharmaceutical Group Co., Ltd., potentially boosting Shionogi’s market presence and revenue in China.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3100.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Amends Tender Offer for Torii Pharmaceutical Shares
May 28, 2025

Shionogi & Co., Ltd. has announced amendments to its tender offer for shares of Torii Pharmaceutical Co., Ltd., following a notice from the Japan Fair Trade Commission. These amendments, which do not alter the terms of purchase, are necessary to update the Tender Offer Statement and ensure compliance with regulatory requirements, reflecting the company’s commitment to adhere to legal standards in its acquisition efforts.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3100.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Proposes Governance Structure Overhaul to Enhance Strategic Oversight
May 16, 2025

Shionogi & Co., Ltd. announced its decision to propose amendments to its Articles of Incorporation at the upcoming Annual General Meeting of Shareholders. The amendments aim to transition the company to a structure with an Audit and Supervisory Committee, enhancing corporate governance and facilitating strategic decision-making. This move is expected to strengthen oversight, promote globalization, and support business model transformation, potentially impacting the company’s operational efficiency and stakeholder engagement.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3100.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi & Co. Reports Fiscal Year 2024 Financial Results with Positive Outlook
May 12, 2025

Shionogi & Co., Ltd. reported its consolidated financial results for the fiscal year 2024, showing a slight increase in revenue and operating profit compared to the previous year. The company conducted a 3-for-1 stock split effective October 2024, which impacted earnings per share calculations. Despite a decline in comprehensive income, the company forecasts significant growth in revenue and profit for the fiscal year ending March 2026, indicating a positive outlook for stakeholders.

Shionogi Announces Tender Offer to Acquire TORII Pharmaceutical
May 7, 2025

Shionogi & Co., Ltd. has announced the commencement of a tender offer to acquire all shares of TORII PHARMACEUTICAL CO., LTD., aiming to make it a wholly-owned subsidiary. This strategic move is part of a broader transaction involving stock consolidation and capital restructuring, which is expected to enhance Shionogi’s market position and operational capabilities by integrating TORII’s resources and expertise.

Shionogi Expands Pharmaceutical Capabilities with Strategic Acquisitions
May 7, 2025

Shionogi & Co., Ltd. announced a strategic move to acquire the pharmaceutical business of Japan Tobacco Inc. and make Akros Pharma Inc. a sub-subsidiary, enhancing its capabilities in small molecule drug discovery. This transaction aligns with Shionogi’s vision of creating a new healthcare platform and aims to accelerate the development of innovative drugs, strengthen its global market position, and contribute to global health by delivering advanced pharmaceuticals.

Shionogi & Co. Increases Dividend Forecasts Amid Strong Market Performance
Apr 24, 2025

Shionogi & Co. announced an increase in its dividend forecasts for the fiscal year ending March 31, 2025, reflecting its commitment to shareholder returns and corporate value growth. The company has achieved revenue stability in its domestic market through its respiratory infection treatments and is expanding its global presence with Cefiderocol. Additionally, Shionogi is advancing its COVID-19 treatment, Ensitrelvir, through clinical trials and regulatory discussions, while benefiting from increased royalties from its HIV franchise. The dividend increase is part of Shionogi’s strategy to enhance shareholder value, supported by its strong financial performance and strategic investments.

Shionogi Submits NDA for COVID-19 Antiviral Ensitrelvir to FDA
Mar 31, 2025

Shionogi & Co., Ltd. has initiated a rolling submission of a new drug application with the U.S. FDA for its oral antiviral ensitrelvir, intended for post-exposure prophylaxis of COVID-19. This submission follows positive results from the SCORPIO-PEP Phase 3 study, which demonstrated the drug’s efficacy in preventing symptomatic COVID-19. If approved, ensitrelvir would be the first orally-administered option for post-exposure prophylaxis of COVID-19, potentially enhancing Shionogi’s market position and offering a new preventive measure amid decreasing vaccination rates and emerging variants.

Shionogi Seeks Approval for COVID-19 Prophylaxis Drug in Japan
Mar 27, 2025

Shionogi & Co., Ltd. has submitted a supplemental New Drug Application in Japan for its oral antiviral drug, ensitrelvir, intended for post-exposure prophylaxis of COVID-19. If approved, it will be the first oral option for this purpose, enhancing Shionogi’s position in the antiviral market. The application is supported by positive results from a Phase 3 study, which demonstrated the drug’s efficacy in preventing COVID-19 in exposed individuals. This development could significantly impact COVID-19 management, offering a new preventive measure amid challenges with vaccination rates and emerging variants.

Shionogi & Co. to Enhance Governance with New Audit and Supervisory Committee
Mar 24, 2025

Shionogi & Co., Ltd. announced its decision to transition to a Company with an Audit and Supervisory Committee, aiming to enhance oversight and streamline decision-making processes. This transition, pending shareholder approval, is expected to strengthen the company’s governance structure and support its strategic goals, including globalization and business model transformation, while maintaining a diverse and skilled Board of Directors.

Shionogi’s Ensitrelvir Shows Promise in COVID-19 Prevention
Mar 13, 2025

Shionogi & Co., Ltd. announced promising results from its Phase 3 trial of ensitrelvir, an oral antiviral drug, which showed a significant reduction in the risk of developing COVID-19 when used as post-exposure prophylaxis. This development positions ensitrelvir as a potential breakthrough in preventing COVID-19, especially for high-risk individuals, and highlights Shionogi’s commitment to addressing unmet medical needs in infectious disease prevention.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.