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Eisai Co (JP:4523)
:4523
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Eisai Co
(OTC:4523)
Rating:71Outperform
Price Target:
¥4,363.00
▲(10.51%Upside)
Eisai Co (4523) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.11T
Dividend Yield4.2%
Average Volume (3M)1.46M
Price to Earnings (P/E)24.1
Beta (1Y)0.79
Revenue Growth6.42%
EPS Growth11.00%
CountryJP
Employees11,067
SectorHealthcare
Sector Strength42
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)3.62
Shares Outstanding291,649,140
10 Day Avg. Volume1,460,490
30 Day Avg. Volume1,459,823
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.36
Price to Sales (P/S)0.00
P/FCF Ratio77.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,799.36Price Target Upside21.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Eisai Co Business Overview & Revenue Model
Company DescriptionEisai Co., Ltd. offers pharmaceutical products in Japan. It offers Aricept for the treatment of alzheimer's disease/dementia with Lewy bodies; Methycobal for the treatment of peripheral neuropathy; and Fycompa, an antiepileptic drug for the adjunctive treatment of partial-onset and primary generalized tonic-clonic seizures. The company also provides Lyrica for pain treatment; Dayvigo, an anti-insomnia drug for the treatment of adults with insomnia; Lenvima, an anticancer agent/molecular targeted medicine for the treatment of thyroid cancer, renal cell carcinoma in combination with everolimus, and hepatocellular carcinoma; and Halaven, an anticancer agent/microtubule dynamics inhibitor for the treatment of breast cancer and liposarcoma. In addition, it offers Pariet, a proton-pump inhibitor for the treatment of gastric and duodenal ulcers, reflux esophagitis, and eradication of Helicobacter pylori infections, etc.; Humira, a fully human anti-TNF-a monoclonal antibody for the treatment of autoimmune diseases, such as rheumatoid arthritis; and Chocola BB plus, a vitamin B2 preparation for rough skin and stomatitis, as well as various products, which include third-class OTC drugs, designated quasi-drugs, and food with nutrient function. The company was formerly known as Nihon Eisai Co., Ltd. and changed its name to Eisai Co., Ltd. in 1955. Eisai Co., Ltd. was incorporated in 1941 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyEisai Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company earns money by developing and marketing a portfolio of prescription drugs, particularly in the fields of neurology and oncology. Key revenue streams include global sales of flagship products like Aricept, which is used to treat Alzheimer's disease, and Lenvima, an anti-cancer drug. Eisai also enters into strategic partnerships and collaborations with other pharmaceutical companies, which contribute to its earnings through licensing agreements, co-promotion deals, and research collaborations. Additionally, the company invests in research and development to innovate new treatments, which can lead to future revenue growth as these products reach the market.
Eisai Co Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2025)
| % Change Since: 1.73%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
Eisai Co. reported strong fiscal year 2024 results with increased revenue and profit, driven by the performance of their global brands, particularly LEQEMBI. However, challenges remain in the U.S. market with slow penetration of LEQEMBI and increased costs. Structural reforms and global expansion efforts are positive signs, but competitive pressures and cost management pose ongoing challenges.Q4-2025 Updates
Positive Updates
Record Revenue and Profit for FY 2024
Eisai Co. reported an increase in both revenue and profits for fiscal year 2024, exceeding their forecast. Total revenue reached ¥789.4 billion, a year-over-year increase of ¥47.6 billion.
Strong Performance of Global Brands
The three global brands, LENVIMA, Lemborexant (Dayvigo), and LEQEMBI, collectively achieved ¥426.5 billion in revenue, marking a 24% year-over-year increase.
LEQEMBI Approval and Global Expansion
LEQEMBI has been approved in 44 countries and exceeded its full-year revenue forecast with ¥44.3 billion in global revenue for FY 2024.
R&D Expense Reduction
R&D expenses were reduced by 1.6 percentage points due to the closure of inactive research laboratories and reduced impairment losses.
Structural Reforms in Americas
Eisai has completed structural reforms in the Americas, streamlining the sales force and administrative functions to improve financial performance.
Negative Updates
Increased Cost of Sales
Cost of sales increased by 0.5 percentage points due to a one-time decrease in revenue and the impact of the Inflation Reduction Act related to Lenvima.
Challenges in U.S. Market for LEQEMBI
The U.S. market for LEQEMBI is approaching the end of the demand stimulation phase, but has not yet entered the demand expansion phase as anticipated.
Slow LEQEMBI Market Penetration
Despite approval, the penetration of LEQEMBI in the U.S. has been slower than expected, largely due to challenges in establishing treatment pathways across diverse healthcare systems.
SG&A Expenses Increase
SG&A expenses increased by 1.2 percentage points, due to continued investment in LEQEMBI and temporary increases related to U.S. structural reforms.
LEQEMBI's Competitive Pressure
Concerns have been raised regarding competition from other Alzheimer's treatments, potentially impacting LEQEMBI's market share.
Company Guidance
During the financial results briefing session for fiscal year 2024, Eisai reported a significant increase in both revenue and profit, exceeding their initial forecasts. Revenue from their three global brands, LENVIMA, Lemborexant, and LEQEMBI, totaled ¥426.5 billion, marking a 24% year-over-year increase. LEQEMBI alone contributed ¥40 billion to this growth. The cost of sales increased by 0.5 percentage points, while R&D expenses decreased by 1.2 percentage points, largely due to the closure of some research facilities. SG&A expenses saw a controlled increase of 1.2 percentage points due to investments in LEQEMBI marketing and U.S. structural reforms. LEQEMBI's revenue for FY 2024 reached ¥44.3 billion globally, with significant contributions from the Americas and Japan. Looking ahead, Eisai forecasts LEQEMBI's revenue to reach ¥76.5 billion in fiscal 2025, driven by expected demand expansion phases in key markets like the U.S. and Japan. The company plans to continue investing in LEQEMBI while implementing organizational transformations to enhance efficiency and achieve profitability by fiscal 2026.Eisai Co Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 791.66B | 741.75B | 744.40B | 756.23B | 645.94B | 695.62B | Gross Profit |
| 627.35B | 586.42B | 566.57B | 581.39B | 484.63B | 519.93B | EBIT |
| 58.06B | 53.41B | 40.04B | 53.75B | 51.77B | 125.50B | EBITDA |
| 121.45B | 103.11B | 87.26B | 94.55B | 90.05B | 162.94B | Net Income Common Stockholders |
| 58.79B | 42.41B | 55.43B | 47.95B | 41.94B | 121.77B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 153.46B | 305.12B | 267.89B | 310.06B | 249.01B | 255.80B | Total Assets |
| 1.10T | 1.39T | 1.26T | 1.24T | 1.09T | 1.06T | Total Debt |
| 409.81B | 159.41B | 126.11B | 94.89B | 89.89B | 89.94B | Net Debt |
| 340.17B | -145.27B | -141.25B | -214.74B | -158.85B | -164.31B | Total Liabilities |
| 680.17B | 494.82B | 440.78B | 467.78B | 362.07B | 359.51B | Stockholders Equity |
| 416.68B | 875.61B | 799.96B | 748.82B | 703.18B | 678.13B |
| Cash Flow | Free Cash Flow | ||||
| 15.42B | 31.17B | -36.33B | 77.12B | 35.71B | 52.56B | Operating Cash Flow |
| 18.86B | 55.99B | -1.77B | 117.59B | 73.85B | 102.78B | Investing Cash Flow |
| -1.74B | -25.32B | -22.72B | -28.85B | -36.87B | -27.63B | Financing Cash Flow |
| -33.57B | -22.72B | -24.52B | -48.97B | -55.91B | -103.53B |
Eisai Co Technical Analysis
Negative
3948.00
Price Trends
3957.08
Negative
4121.73
Negative
4592.28
Negative
Market Momentum
14.36
Negative
48.16
Neutral
43.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4523, the sentiment is Negative. The current price of 3948 is above the 20-day moving average (MA) of 3934.50, below the 50-day MA of 3957.08, and below the 200-day MA of 4592.28, indicating a neutral trend. The MACD of 14.36 indicates Negative momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 43.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4523.
Eisai 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥1.11T | 24.11 | 5.34% | 4.20% | 6.42% | 11.00% | |
54 Neutral | $5.31B | 3.29 | -45.39% | 2.79% | 16.77% | -0.07% | |
| $2.20B | 15.17 | 13.50% | ― | ― | ― | ||
| $2.24B | 16.67 | 7.90% | 1.81% | ― | ― | ||
| $14.84B | 11.57 | 12.99% | 2.67% | ― | ― | ||
| $46.99B | 61.55 | 1.50% | 4.71% | ― | ― | ||
| $1.76B | 10.69 | 11.16% | 3.01% | ― | ― |
* Healthcare Sector Average
Performance Comparison
JP:4523
Eisai Co
3,948.00
-2,701.06
-40.62%
DNPUF
Sumitomo Dainippon Pharma Co
5.58
3.32
146.90%
HTSUF
Hisamitsu Pharmaceutical Co
32.30
8.48
35.60%
SGIOF
Shionogi & Co
15.20
2.20
16.92%
TKPHF
Takeda Pharmaceutical Co
27.60
1.75
6.77%
TSMRF
Tsumura & Co
29.95
4.97
19.90%
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.