F3/27 1Q Results: Enhertu & Datroway Still Strong, but Much Focus on Other Areas

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M

Update

July 31, 2026 04:06 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Daiichi Sankyo (4568) | Japan

Shinichiro Muraoka

Equity Analyst

F3/27 1Q Results: Enhertu &

Datroway Still Strong, but

Much Focus on Other Areas

AlphaSignals Earnings Reaction

Jaeheon Lee

Equity Analyst

Daiichi Sankyo (4568.T, 4568 JT)

Unchanged

Modest upside

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Share price down 11%: The margin of decline widened right after 1pm results.

Top Pick

Pharmaceuticals | Japan

Stock Rating

Industry View

Price target

Shr price, close (Jul 31, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Overweight

In-Line

¥4,650

¥2,568

¥4,672.0

¥24.2

That investor confidence slumped despite the core product strength is

disappointing

Results included many explanations: Past results changes (F3/26 profit raised),

hike to F3/27 guidance (sales up; core OP unchanged), inventory valuation losses

New drugs: TL07 (NSCLC 1L, TPS<50) results date pushed back to F3/28 from

F3/27 2H. AVANZAR results still expected in Jul-Dec

Downside risk quite limited after the stock tumbles: We remain OW. We believe

Daiichi Sankyo will need to show steady progress in both earnings and development

trends in order to reverse the trend with its results explanations dating back to last

autumn, which has caused a prevailing view in the market that the stock looks

undervalued but is difficult to buy aggressively. Our view remains that, once the

AVANZAR results are released, the stock will turn higher as the overhang from

negative news is removed.

Two main products strong: The company raised US sales guidance for both Enhertu

and Datroway. Both drugs are steadily making market headway, mainly for breast

cancer treatment. US approval for I-DXd is expected on October 10.

Multiple slight negatives: The revision to F3/26 results (core OP raised by ¥29bn)

was to correct an error in the treatment of accounts payable to customers. In

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