Focus on POC data for in-house compounds spanning seven diseases in FY3/27

Research evidence excerpt

Focus on POC data for in-house compounds spanning seven diseases in FY3/27

ritis), and Povetacicept (IgA nephropathy) in FY3/30. We assume

sales (domestic) of ¥132.9b for Opdivo in FY3/31. Following a failure to meet

primary endpoints, we remove Opdivo from our sales forecasts as a pre/post-

surgery adjuvant indication for bladder cancer (potential patients: 6,000).

WATCH: Development progress for in-house drugs, trial results

Regarding point a), ONO-1110 targets the regulation of endogenous

cannabinoids and has potential applications across a wide range of

indications, including pain and psychiatric disorders. For ONO-2020, a POC

determination is pending for two indications: namely, Alzheimer's disease

and agitation. If POC is successfully established for both compounds,Analyst Yuriko Ishida

+81 3 6202 8231 yuriko.ishida@mizuho-sc.com out-licensing opportunities may emerge in certain therapeutic areas.

Senior Analyst Hiroshi Tanaka Furthermore, we assume the first approved indication of ONO-4578 will be+81 3 6202 8351 hiroshi.tanaka@mizuho-sc.com

for first-line treatment of PD-L1-positive (CPS of at least 1) gastric cancer.

Click here for ESG on We forecast sales of ¥83.4b for ONO-4578 in FY3/31. With around 70% of

our entire coverage gastric cancer patients being PD-L1 positive, we think this patient population

alone should be sufficient to support meaningful sales.

MEASURE: Average FY3/31 PER for 10 drug companies

We still apply a PER approach, with our price objective of ¥3,200 based

on our FY3/31 core EPS estimate of ¥303.3 (previously our FY3/30 regular

EPS estimate of ¥166.4) and a PER of 10.5x for FY3/31 (previously 13x

for FY3/30), calculated from the average FY3/30 PER of 11.0x for the 10

pharmaceutical companies under our coverage.