Eisai (4523) Q2 2025 earnings summary

Executive summary

• Q2 FY2024 revenue rose 3.1% year-on-year to ¥385.0 billion, driven by growth in Lenvima, Dayvigo, and Leqembi, offsetting the absence of a prior-year upfront payment for elacestrant rights.

• Operating profit was ¥27.8 billion, down 11.4% year-on-year, reflecting higher selling expenses for Leqembi, increased profit-sharing with Merck for Lenvima, and yen depreciation.

• Profit attributable to owners of the parent was ¥21.7 billion, a 6.2% decrease year-on-year; EPS was ¥76.13.

• LEQEMBI global launch continues, with approvals in 8 countries and regulatory reviews ongoing in 17 more.

• Strategic focus on expanding infusion capacity, introducing subcutaneous autoinjector (SC-AI), and leveraging blood-based biomarkers (BBM) to streamline Alzheimer's diagnosis and treatment.

Financial highlights

• Gross profit increased to ¥302.8 billion (up 3.3% year-on-year); gross margin stable at 78.6%.

• SG&A expenses rose 10.1% year-on-year, reflecting higher selling costs and profit-sharing, especially for Leqembi.

• R&D expenses were stable at ¥81.8 billion, with continued investment in key projects like Leqembi.

• LEQEMBI global revenue for 1H FY2024 reached ¥16.3 billion, with full-year forecast at ¥42.5 billion.

• Lenvima revenue for 1H FY2024 was ¥164.9 billion, up 9% year-on-year, with strong growth in the Americas.

Outlook and guidance

• FY2024 revenue forecast is ¥754.0 billion (+1.7% year-on-year); operating profit forecast is ¥53.5 billion (+0.2%).

• EPS for FY2024 is projected at ¥152.50; dividend forecast is unchanged at ¥160 per share, with interim dividend of ¥80 resolved.

• Lenvima revenue forecast raised to ¥304.5 billion; Leqembi forecast lowered to ¥42.5 billion based on recent trends.

• Leqembi global revenue forecast set at ¥42.5 billion, with strong growth expected in Japan and China to offset US delays.

• Near-term growth expected from SC-AI approval (Q4 FY2024) and BBM guideline adoption (FY2025).