Eisai (4523) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 consolidated revenue rose 9% year-on-year to JPY 601.2 billion, with double-digit profit growth driven by Leqembi, Lenvima, and Dayvigo.

• Operating profit increased 48% year-on-year to JPY 55.4 billion, and net profit attributable to owners of the parent rose 56% to JPY 45.5 billion.

• Major product launches and regulatory progress included Leqembi in multiple regions, new Lenvima indications, and launches of Tasfygo and Rozebalamin in Japan.

• Growth in the pharmaceutical segment offset negative impacts from the expiration of the Humira marketing agreement in Japan.

• Significant alliances, licensing, and new business ventures were executed during the period.

Financial highlights

• Pharmaceutical business revenue reached JPY 569.1 billion, up 8% year-on-year; consolidated revenue up 9% to JPY 601.2 billion.

• Gross profit rose 9% to JPY 473.0 billion, with a gross margin of 78.7%.

• R&D expenses were JPY 125.3 billion, with partner reimbursements reducing net R&D to 96% of prior year; impairment loss of JPY 3.7 billion recorded for BB-1701.

• SG&A expenses increased 11% to JPY 301.5 billion, including JPY 115.1 billion in shared profit to Merck for Lenvima.

• Other income surged to JPY 11.4 billion, mainly from reversal of deposits and gain on sales rights.

Outlook and guidance

• FY2024 revenue forecast is JPY 754.0 billion (up 1.7% year-on-year), with operating profit of JPY 53.5 billion and EPS of JPY 152.50.

• Leqembi FY2024 revenue forecast is JPY 42.5 billion globally, with JPY 26.5 billion in the US, JPY 12 billion in Japan, and JPY 4 billion in other regions.

• Dividend forecast maintained at JPY 160 per share; interim and year-end dividends each JPY 80 per share.

• Leqembi is expected to enter a growth expansion phase, with new formulations and pathway improvements supporting future growth.

• Management highlights risks from currency fluctuations, market conditions, and global economic factors.