Daiichi Sankyo (4568): CEO meeting: Revisiting MTP issues including CMO compensation, costs, BGT

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Daiichi Sankyo (4568): CEO meeting: Revisiting MTP issues including CMO compensation, costs, BGT

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Daiichi Sankyo (4568)

CEO meeting: Revisiting MTP issues

including CMO compensation, costs, BGT

Maintain Rating: BUY | PO: 4,500 JPY | Price: 2,636 JPY

19 May 2026

On 19 May, Daiichi Sankyo held a CEO meeting for sell-side analysts. Discussions mainly

Equitycentered on the recently announced medium-term plan (MTP). We maintain our Buy

rating and ¥4,500 PO, supported by our view that DXd ADCs should continue to underpin Koichi Mamegano >>

growth. Research Analyst

BofAS Japan

koichi.mamegano@bofa.com

CMO loss compensation expected to decline YoY Takefumi Kobayashi >>

Regarding CMO loss compensation, which was a key issue in FY3/26 results and the Research Analyst

medium-term plan, management explained that losses materialized as compensation takefumi.kobayashi@bofa.com

because a gap emerged versus the optimal purchase volume following a review of the Ritsuo Watanabe >>

supply plan based on DXd ADC development progress. Meanwhile, management Research Analyst

explained that the decision at the time was reasonable from the perspective of avoiding ritsuo.watanabe@bofa.com

supply concerns, in order to respond to high demand growth for Enhertu. Daiichi Sankyo

is now working to resolve the supply-demand gap by repurposing production lines and

reviewing the use of external resources, and expects booked losses to decrease YoY. Stock Data

Management also indicated that it intends to prevent recurrence by formulating supply

plans based on demand forecasts that incorporate risk adjustments. Price (Common / ADR) 2,636 JPY / 16.46 USD

Price Objective 4,500 JPY / 29.00 USD

Targeting earlier cost optimization to support profitability Date Established 6-Mar-2026/ 6-Mar-2026