DS JPM 2025

Summary of Daiichi Sankyo's Conference Call Company Overview - Company: Daiichi Sankyo Co., Ltd. - Date: January 13, 2025 - CEO: Sunao Manabe Key Points Industry and Company Focus - Industry: Oncology, specifically focusing on Antibody-Drug Conjugates (ADCs) [8][9] - Core Products: ENHERTU®, DATROWAY®, HER3-DXd [53] Financial Performance - FY2024 Consolidated P&L Overview: - Revenue: 1,830.0 billion JPY, an increase of 228.3 billion JPY (+14.3% from FY2023) [9] - Cost of Sales: 410.0 billion JPY, a decrease of 4.8 billion JPY (-1.2%) [9] - SG&A Expenses: 700.0 billion JPY, an increase of 72.7 billion JPY (+11.6%) [9] - R&D Expenses: 460.0 billion JPY, an increase of 95.7 billion JPY (+26.3%) [9] - Core Operating Profit: 260.0 billion JPY, an increase of 64.7 billion JPY (+33.1%) [9] - Operating Profit: 280.0 billion JPY, an increase of 68.4 billion JPY (+32.4%) [9] - Profit Attributable to Owners: 225.0 billion JPY, an increase of 24.3 billion JPY (+12.1%) [9] Product Development and Approvals - ADCs Development: - 7 DXd ADCs from the DXd platform are currently in development [15] - ENHERTU® has received approvals for 5 indications, launched in over 60 countries, with expected annual sales exceeding 500 billion JPY in FY2024 [18][19] - Regulatory submissions for ENHERTU® based on DESTINY-Breast06 outcomes are under review in Japan, US, and EU [22] Strategic Collaborations - Collaboration with AstraZeneca: - Awarded the 2024 Prix Galien USA Award for Best Biotechnology Product for ENHERTU® [16] - Collaboration enhances product value and clinical development opportunities [44] - Collaboration with Merck: - Strategic collaboration initiated in October 2023 for co-development and co-commercialization of HER3-DXd, I-DXd, and R-DXd [28] Shareholder Returns - Shareholder Return Policy: - Targeting ROE > 16% and DOE > 8% by FY2025 [51][52] - Plans to increase dividends for three consecutive years, considering profit growth [55] - Total acquisition cost for share buybacks is 200 billion JPY [57] Future Outlook - 5-Year Business Plan (FY2021-FY2025): - Aiming to become a global pharma innovator with a competitive advantage in oncology by 2025 [59][61] - Focus on sustainable growth and enhancing shareholder value [61][62] Additional Insights - Digital Pathology Platform: - Development of a digital pathology platform to enhance capabilities for upcoming products [39][40] - Supply Capacity: - Capital investment of approximately 600 billion JPY planned globally to meet peak demand for ADCs [48] This summary encapsulates the essential information from the conference call, highlighting the company's financial performance, product development, strategic collaborations, shareholder returns, and future outlook in the oncology sector.