Japan Pharmaceuticals: Apr-Jun results recap: US brisk+ weak yen. Otsuka HD + Astellas positive. Top picks: Otsuka, Takeda

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11 Aug 2026 07:14:03 ET │ 12 pages

Japan Pharmaceuticals

Apr-Jun results recap: US brisk+ weak yen. Otsuka HD + Astellas

positive. Top picks: Otsuka, Takeda

CITI'S TAKE

We review April-June results. Over the past month, Japan's

pharmaceutical sector has risen 4%, outperforming the Nikkei 225 (-2%),

though attention remains limited. US growth and the weak yen drove

earnings. Most companies posted positive results versus consensus. The

release from Otsuka HD was encouraging (guidance hike, VOYXACT data).

Astellas Pharma also posted surprisingly strong profit (PADCEV,

Mirabegron, cost management), and we expect a guidance hike with Q2

results. Eisai started FY3/27 strongly (Lenvima, Leqembi). Results

undershot consensus at Chugai (Foundayo and other royalties, Roche

exports) and Daiichi Sankyo (European restructuring costs, inventory

valuation losses, strong oncology). Within our coverage, only Otsuka HD

revised guidance upward. Daiichi Sankyo made minor profit adjustments.

Our top picks are Otsuka and Takeda.

Hidemaru YamaguchiAC

• Yen weakness boosted Q1 earnings, and if current exchange rates persist,

we expect Q2 to bring more upward revisions, starting with Astellas

Pharma. By region, Japan and the US performed well while South America

was weak, while operations in China faces intensifying competition from

local companies. By therapeutic area, we expect greater attention on IgAN

(Otsuka), narcolepsy treatments (Takeda, Eisai), lung cancer (Daiichi

Sankyo), macular edema (Kyowa Kirin), blood cancer (Sumitomo), and

analgesics (Ono). We see Shionogi, Eisai, Nippon Shinyaku, and Kyowa

Kirin as particularly active in terms of partnerships. We expect Nippon

Shinyaku to terminate its CAP-1002 partnership.

• We highlight the following key points. Kyowa Kirin saw strong Q2 earnings

from Crysvita but maintained full-year guidance (already revised in Q1). The

next key event will be a Phase-2 readout for KHK-4951, an eye drop

treatment for macular degeneration. With Kirin Holdings deciding on a new

acquisition, we expect TOB expectations for Kyowa Kirin to fade.

• Takeda Pharmaceutical beat consensus primarily due to forex effects. The

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