Eisai (4523): Strategy briefing: profitability quality under scrutiny; investing for growth

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Eisai (4523): Strategy briefing: profitability quality under scrutiny; investing for growth

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Eisai (4523)

Strategy briefing: profitability quality

under scrutiny; investing for growth

Maintain Rating: UNDERPERFORM | PO: 4,000 JPY | Price: 4,143 JPY

25 May 2026

Conservative earnings targets; cost execution key Equity

After the market close on the 25th, Eisai held a strategy briefing. It positioned the

three‑year period from FY3/27 as a “transition phase toward sustainable growth” and Koichi Mamegano >>

Research Analyst

set targets of ¥1.0tn in revenue and ¥90.0bn in operating profit for FY3/29. Compared BofAS Japan

with the operating profit consensus of ¥101.8bn, the targets appear to prioritize koichi.mamegano@bofa.com

achievability. However, given assumptions of rising cost of goods sold, the plan calls for Takefumi Kobayashi >>

SG&A and R&D expenses to remain broadly flat, making disciplined cost control a key BofAS Japan

prerequisite for achieving the profit targets. We maintain our Underperform rating with takefumi.kobayashi@bofa.com

a price objective of ¥4,000. Ritsuo Watanabe >> Research Analyst

BofAS Japan

ritsuo.watanabe@bofa.comCost assumptions reasonable; profits hinge on COGS

We view the cost assumptions as reasonable overall, although visibility differs by cost

category. SG&A expenses are likely to remain broadly flat, as increased spending related

to Leqembi (Alzheimer’s disease) is expected to be offset by lower co‑promotion Stock Data

expenses for Lenvima (oncology). R&D expenses are also expected to be stable, with

increased investment in new drug development offset by declining Leqembi-related Price 4,143 JPY

costs. In contrast, cost of goods is assumed to rise to 30% by FY3/29 due to an Price Objective 4,000 JPY