Overview of the Situation#
Daiichi Sankyo, a Japanese pharmaceutical company, saw its stock price drop by 10.4% on Thursday. This decline followed the announcement of a second delay in releasing its fourth quarter financial results and its medium-term business plan.
New Release Dates#
The company has now scheduled to release both its fourth quarter results and the new medium-term plan at 15:30 JST on May 11. This will be followed by a briefing at 18:00 JST on the same day. Previously, the medium-term plan was set to be released on April 8, and the fourth quarter results were expected on April 27.
Reason for the Delay#
Daiichi Sankyo explained that it requires more time to calculate a loss compensation provision related to a contract development and manufacturing organization for a product still in development. This provision will be recorded in the fiscal year 2026. The company had already set aside ¥12.7 billion for a related product, HER3, in its second quarter results.
Analyst Insights#
Analysts from Morgan Stanley noted that while specific details are not available, the new charge likely pertains to HER3. They emphasized that the product in question is still in development and is probably not one of the company's more advanced drugs, Enhertu or Datroway. They believe the impact of this news may be limited, as market expectations for HER3 are already low. The analysts suggested that the company may have adjusted its supply outlook due to further delays in the HER3 launch timeline.