Pharmaceutical Sector Weekly: August 3-7: April-June results all out, Otsuka Holdings still our top pick

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

08 August 2026

Pharmaceutical Sector Weekly

August 3-7: April-June results all out, Otsuka Holdings

still our top pick

The pharmaceutical sector rose 3% WoW the week of August 3-7, outperforming

TOPIX (+1.8%). On an individual company basis, in addition to solid results,

Otsuka Holdings announced strong results of the Phase 3 study of IgA nephropathy

drug Voyxact showing it maintained kidney function for two years, causing the

share price to rise 14.5% WoW. In addition to solid near-term earnings, we also

expect medium- to long-term profit growth through Voyxact's growth. We

continue to recommend Otsuka Holdings as our top pick.

All companies we cover have reported April-June results. Thanks in part to the

weak yen, we confirmed solid sales progress at many companies. However, with

many companies reporting 1Q results, few revised full-year guidance, leading to

results with few surprises overall. While we found macro factors sometimes

driving the share price more than the content of individual company results right

after results announcements, we believe we are gradually going back to evaluating

company fundamentals. We look for a pharmaceutical sector re-rating based on

solid April-June results. Figures 2-4 show our comments on April-June results.

Chugai Pharmaceutical: Eli Lilly (covered by Chris Schott) reported 2Q

2026 results August 5. We believe inflection points for Foundayo are coming

into view. See our report here.

Chugai Pharmaceutical: IQVIA updated Foundayo prescription data for

Week 17 (week ending July 31) August 7. IQVIA recorded 34,219

prescriptions (+16% WoW). In particular, new prescription share of the

starting dose was 25.8%, up sharply from 19.6% the previous week, suggesting

that momentum for new patient acquisition might be picking up.

See Symphony Health US sales data for July 2026 here.

Japan Equity Research

Biotechnology & Pharmaceuticals/

Medical Technologies & Services

Seiji Wakao, Ph.D. AC

(81-3) 6736-8612

Yugo R. Kamimura, Ph.D.

(81-3) 6736-8635

Naoko Saito

(81-3) 6736-8693

JPMorgan Securities Japan Co., Ltd.