Pharmaceutical Sector Weekly: June 22-26: Santen Pharmaceutical

Research evidence excerpt

Pharmaceutical Sector Weekly: June 22-26: Santen Pharmaceutical

J P M O R G A N Asia Pacific Equity Research

26 June 2026

Pharmaceutical Sector Weekly

June 22-26: Santen Pharmaceutical

The pharmaceutical sector rose 0.9% WoW the week of June 22-26, outperforming Japan Equity Research

TOPIX (-2.0%). The sector performed solidly as AI and semiconductor stocks

Biotechnology & Pharmaceuticals/

corrected and some funds flowed into stocks that are considered defensive. In Medical Technologies & Services

particular, Santen Pharmaceutical shares rose by a notable 13.6% WoW. The share AC Seiji Wakao, Ph.D.

price has risen due to solid FY2026 guidance, and given the seemingly low

(81-3) 6736-8612

downside risk to earnings and valuation levels, we believe the stock has become seiji.wakao@jpmorgan.com

favored as a defensive pick. In addition, interest seems to have grown recently in Yugo R. Kamimura, Ph.D.

Upneeq, a drug for acquired ptosis launched on May 15. We expect 1Q FY2026 (81-3) 6736-8635

operating profit of ¥8.7 billion (+14.5% YoY; Bloomberg consensus estimate: ¥9.5 yugo.kamimura@jpmorgan.com

billion). We expect the resumption of Diquas LX shipments and the weak yen to Naoko Saito

lead to solid results in YoY terms. For Upneeq and Ryjusea, we would view any (81-3) 6736-8693

positive comments from management positively. naoko.saito@jpmorgan.com

JPMorgan Securities Japan Co., Ltd.

• Daiichi Sankyo: On June 22, Pfizer (covered by Chris Schott) announced top-

line results of the Phase 3 SigVie-002 study of sigvotatug vedotin (SV), an

antibody drug conjugate (ADC) targeting integrin β6 (IB6). See our report

here.

• Otsuka Holdings: Otsuka announced on June 25 that it had obtained solid

results for centanafadine from the Phase 3b study in adult ADHD patients with