Eisai (4523) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue was ¥189.0B, down 4% year-over-year, but pharmaceutical business revenue rose 3% to ¥186.6B, driven by LENVIMA, DAYVIGO, and LEQEMBI growth.

• Operating profit was ¥13.4B, down 48–52% year-over-year, mainly due to the absence of prior-year one-time income, but results were in line with the business plan.

• LEQEMBI revenue surged to ¥6.3B (up 87x year-over-year), with rapid expansion in the US, Japan, and China.

• Proactive investment in LEQEMBI continued, with R&D and SG&A expenses rising, and overall profit for the period declined to ¥11.5B.

• Growth in LENVIMA, DAYVIGO, and LEQEMBI was partially offset by the end of the HUMIRA partnership and lower elacestrant payments.

Financial highlights

• Gross profit was ¥149.3B (down 2% year-over-year), with gross margin improving to 79.0%.

• R&D expenses were ¥41.7B (up 1%), SG&A expenses ¥99.5B (up 16%), and other income ¥5.4B.

• Profit for the period was ¥11.5B, 55% of prior year; EPS for Q1 was ¥36.95.

• Free cash flow was negative ¥5.0B, with cash and cash equivalents at quarter-end of ¥303.9B.

• Q1 average exchange rate: 1 USD = ¥155.88 (+13.5% YoY).

Outlook and guidance

• FY2024 consolidated revenue forecast is ¥754.0B (+2% year-over-year), with operating profit projected at ¥53.5B and EPS at ¥152.5.

• LEQEMBI full-year sales forecast is ¥56.5B; LENVIMA forecast is ¥296.5B.

• Dividend forecast maintained at ¥160 per share; ROE and DOE expected at 5.2% and 5.5%.

• Focus remains on growth of LENVIMA, DAYVIGO, LEQEMBI, and maintaining financial discipline.

• Dayvigo and Fycompa also expected to contribute to growth.