Eisai (4523) Q2 2025 earnings summary

Executive summary

• Q2 FY2024 revenue rose 3.1% year-on-year to ¥385.0 billion, driven by growth in Lenvima, Dayvigo, and Leqembi, offsetting lower one-time revenues and the absence of a prior-year upfront payment for elacestrant rights.

• Operating profit was ¥27.8 billion, down 11.4% year-on-year, reflecting higher SG&A, Leqembi-related expenses, and yen depreciation.

• Net profit attributable to owners of the parent was ¥21.7 billion, a 6.2% decrease year-on-year; EPS was ¥76.13.

• Growth was led by global brands Lenvima, Dayvigo, and Leqembi, with combined revenue exceeding ¥200 billion, up 21% year-on-year.

• LEQEMBI global launch continues, with approvals in 8 countries and regulatory reviews ongoing in 17 more.

Financial highlights

• Gross profit increased to ¥302.8 billion (up 3.3% year-on-year); gross margin stable at 78.6%.

• SG&A expenses rose 10.1% year-on-year, mainly due to higher selling costs and profit-sharing for Lenvima and Leqembi.

• R&D expenses were stable at ¥81.8 billion, with improved efficiency and continued investment in key projects.

• Net cash from operating activities was ¥0.9 billion, down ¥28.4 billion year-on-year, mainly due to increased inventories and lower deposits received.

• LEQEMBI global revenue for 1H FY2024 reached ¥16.3 billion, with full-year forecast at ¥42.5 billion.

Outlook and guidance

• FY2024 revenue forecast is ¥754.0 billion (+1.7% year-on-year), with operating profit projected at ¥53.5 billion and EPS at ¥152.5.

• Dividend maintained at ¥160 per share; interim dividend of ¥80 per share declared.

• Lenvima revenue forecast raised to ¥304.5 billion; Leqembi forecast lowered to ¥42.5 billion due to U.S. infusion capacity constraints.

• Near-term growth expected from SC-AI approval (Q4 FY2024/FY2025) and BBM guideline adoption (FY2025).

• Profitability for Leqembi expected in China and Japan in FY2025, and globally in FY2026.