Sumitomo Pharma (4506): Reiterate our Overweight rating: Our thesis unchanged despite share-price correction

研报英文原文证据摘录

Sumitomo Pharma (4506): Reiterate our Overweight rating: Our thesis unchanged despite share-price correction

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

16 June 2026

Sumitomo Pharma (4506) Overweight

4506.T, 4506 JP

Reiterate our Overweight rating: Our thesis unchanged Price (16 Jun 26):¥1,487

despite share-price correction Price Target (Dec-26):¥2,300

We revise our estimates to reflect 4Q FY2025 results and the completion of the Japan Equity Research

public share offering. We maintain our ¥2,300 price target and Overweight rating.

Biotechnology & Pharmaceuticals/

The company’s share price continues to correct, but we see substantial upside Medical Technologies & Services

based on solid fundamentals, catalysts, and valuations. Prescription trends for AC Seiji Wakao, Ph.D.

Orgovyx, Gemtesa, and Myfembree (Figures 3-5) are strong, and we expect

(81-3) 6736-8612

Orgovyx and Gemtesa to come in above guidance. We forecast FY2026 operating seiji.wakao@jpmorgan.com

profit of ¥109.5 billion (Bloomberg consensus estimate: ¥104.7 billion), versus Yugo R. Kamimura, Ph.D.

guidance of ¥90.0 billion. (81-3) 6736-8635

yugo.kamimura@jpmorgan.com

We think Sumitomo Pharma’s share-price weakness reflects a disproportionate Naoko Saito

impact compared with other stocks in the pharmaceutical sector from the shift in (81-3) 6736-8693

funds to semiconductor and AI-related stocks. We think company-specific factors naoko.saito@jpmorgan.com

also weighed on the share price: conservative FY2026 guidance, dilution from the JPMorgan Securities Japan Co., Ltd.

equity offering, and a near-term lack of catalysts. The sharp rise in the share price Style Exposure

in 2025 also means the market has yet to fully establish a fair valuation level, which

we think has weighed on the stock.