Eisai (4523): FY2025 Results Summary — Record Revenue on 3L Product Growth, LEQEMBI Sales Nearly Double

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Eisai Co., Ltd. reported FY2025 (fiscal year ended March 31, 2026) consolidated revenue of 825.4 billion yen, up 4.6% year-on-year and a record high, driven by strong growth in the company’s core “3L” products — LENVIMA, DAYVIGO (Lemborexant) and LEQEMBI. Operating profit declined 18.8% YoY to 44.1 billion yen, as the company forewent product out-licensing/divestiture opportunities and recognized expenses related to structural reforms in Europe, even though the operating profit contribution from the organic pharmaceutical business increased substantially. Core operating profit, a new reference indicator introduced this period that excludes temporary items, more than doubled to 50.1 billion yen (+110.7% YoY). For FY2026, Eisai forecasts revenue of 883.5 billion yen (+7.0%) and operating profit of 70.0 billion yen (+58.6%).

Consolidated Results (Full-Year Actual)

Consolidated revenue reached a record 825.4 billion yen (+4.6% YoY, 104.5% versus the initial forecast of 790.0 billion yen), with the pharmaceutical business growing 8.2% YoY to 810.8 billion yen while Other business revenue fell 63.8% YoY to 14.6 billion yen, reflecting the year-on-year decline following management’s decision to forego product out-licensing/divestiture in FY2025 (FY2024 had included a one-off upfront payment for the divestiture of rights for Pariet in China). Operating profit fell 18.8% YoY to 44.1 billion yen (81.0% of the 54.5 billion yen forecast), reflecting that decision plus approx. 8.0 billion yen of costs from structural reform in Europe and approx. 20.0 billion yen of increased proactive investment in LEQEMBI, partly offset by growth in the 3L products. Core operating profit — newly adopted this period to show fundamental earnings excluding items such as out-licensing/divestiture gains or losses, fixed-asset disposal gains/losses, business-restructuring termination benefits, goodwill impairment and significant litigation costs — was 50.1 billion yen (reference value, +110.7% YoY). Profit for the year attributable to owners of the parent was 38.6 billion yen (-17.0% YoY, 92.9% of the 41.5 billion yen forecast), and EPS was 136.78 yen (-16.5% YoY).

Item	FY2025	FY2024	Change
Revenue (billions of yen)	825.4	789.4	+4.6%
Pharmaceutical business (billions of yen)	810.8	749.0	+8.2%
Other business (billions of yen)	14.6	40.4	-63.8%
Cost of sales (billions of yen)	191.2	168.8	+13.3%
Gross profit (billions of yen)	634.2	620.6	+2.2%
R&D expenses (billions of yen)	158.7	171.6	-7.6%
SG&A expenses (billions of yen)	435.3	408.0	+6.7%
Operating profit (billions of yen)	44.1	54.4	-18.8%
Core operating profit, reference value (billions of yen)	50.1*	23.8*	+110.7%
Profit for the year, attributable to owners of the parent (billions of yen)	38.6	46.4	-17.0%
EPS (yen)	136.78	163.76	-16.5%

Segment Results (Revenue and Profit by Region)

Eisai’s pharmaceutical business is organized into five reporting segments: Japan, Americas, China, EMEA, and East Asia Global South. Revenue grew in every region, led by East Asia Global South (+15.6% YoY) and China (+13.2% YoY), both boosted by LEQEMBI expansion, followed by Americas (+8.0% YoY) and Japan (+6.0% YoY); EMEA grew a more modest 2.7% YoY. By segment profit, Americas rose 10.2% YoY to 174.4 billion yen (58.0% margin) on LEQEMBI and LENVIMA growth, while EMEA profit fell 15.4% YoY to 30.4 billion yen (37.3% margin). Other business profit fell 84.8% YoY to 4.5 billion yen, tracking the decline in Other business revenue described above. At the consolidated level, segment profit of 371.8 billion yen was offset by R&D expenses of 138.4 billion yen and Group headquarters’ management costs and other expenses of 189.3 billion yen to arrive at consolidated operating profit of 44.1 billion yen.

Segment	Metric	FY2025	FY2024
Japan	Revenue (billions of yen)	229.2	216.3
Americas	Revenue (billions of yen)	300.4	278.3
China	Revenue (billions of yen)	130.7	115.5
EMEA	Revenue (billions of yen)	81.5	79.4
East Asia Global South	Revenue (billions of yen)	68.8	59.6
Other business	Revenue (billions of yen)	14.6	40.4
Japan	Segment profit, % of revenue (billions of yen)	73.0 (31.8%)	71.7 (33.2%)
Americas	Segment profit, % of revenue (billions of yen)	174.4 (58.0%)	158.3 (56.9%)
China	Segment profit, % of revenue (billions of yen)	59.3 (45.4%)	57.2 (49.5%)
EMEA	Segment profit, % of revenue (billions of yen)	30.4 (37.3%)	35.9 (45.3%)
East Asia Global South	Segment profit, % of revenue (billions of yen)	30.2 (43.9%)	27.4 (46.0%)
Other business	Segment profit, % of revenue (billions of yen)	4.5 (30.9%)	29.6 (73.4%)

3L Product Performance (Global Revenue)

Global revenue of the three 3L growth products all increased YoY: LENVIMA grew 4% YoY to 342.5 billion yen, maintaining its position as the global No.1 TKI (tyrosine kinase inhibitor) in its approved cancer indications; DAYVIGO (Lemborexant) grew 20% YoY to 64.3 billion yen as the global No.1 DORA (Dual Orexin Receptor Antagonist); and LEQEMBI nearly doubled, up 99% YoY to 88.0 billion yen, as the global No.1 AAT (anti-amyloid therapy), with growth led by the Americas (44.6 billion yen, +70.7% YoY) and China (12.4 billion yen, +163.1% YoY).

Product	FY2025 (billions of yen)	FY2024 (billions of yen)	Change (YoY)
LENVIMA (global)	342.5	328.5	+4%
DAYVIGO / Lemborexant (global)	64.3	53.8	+20%
LEQEMBI (global)	88.0	44.3	+99%

FY2026 Forecast

For FY2026, Eisai forecasts consolidated revenue of 883.5 billion yen (+7.0% YoY), with the pharmaceutical business growing 7.3% to 870.0 billion yen. Operating profit is forecast to rise 58.6% YoY to 70.0 billion yen and core operating profit is also forecast at 70.0 billion yen (+39.8% YoY versus the FY2025 core operating profit reference value), as LEQEMBI clinical study expenses have peaked and are declining and cost optimization continues through structural reforms. Profit for the year attributable to owners of the parent is forecast at 52.3 billion yen (+35.6% YoY) and EPS at 185.00 yen (+35.3% YoY). Adjusted ROIC — a new capital efficiency indicator adopted from FY2026, based on core operating profit after taxes divided by equity attributable to owners of the parent (excluding foreign currency translation adjustments) plus net interest-bearing debt — is forecast to rise to 8.7% from 6.8% in FY2025, moving toward a mid- to long-term target of 8-10%. ROE is forecast to rise to 5.9% from 4.4% in FY2025, moving toward a mid- to long-term target of 8%.

Item	FY2026 Forecast	FY2025 (Actual)
Revenue (billions of yen)	883.5	825.4
Pharmaceutical business (billions of yen)	870.0	810.8
Other business (billions of yen)	13.5	14.6
Operating profit (billions of yen)	70.0	44.1
Core operating profit (billions of yen)	70.0	50.1*
Profit for the year, attributable to owners of the parent (billions of yen)	52.3	38.6
EPS (yen)	185.00	136.78
Adjusted ROIC	8.7%	6.8%
ROE	5.9%	4.4%

Segment	Metric	FY2026 Forecast (billions of yen)
Japan	Revenue	233.5
Americas	Revenue	337.0
China	Revenue	147.0
EMEA	Revenue	73.0
East Asia Global South	Revenue	79.5
Other business	Revenue	13.5

Shareholder Returns

This cannot be confirmed from the materials.

Medium-Term Plan / Topics

Eisai implemented two in-licensing investments to strengthen its pipeline: taletrectinib (E7860), a next-generation oral ROS1-selective tyrosine kinase inhibitor for advanced ROS1-positive non-small cell lung cancer in-licensed from Nuvation Bio Inc. (upfront EUR 50 million / approx. 9.0 billion yen, with regulatory and commercial milestones of up to EUR 145 million / approx. 26.1 billion yen, giving Eisai exclusive rights in Europe, the Middle East, Canada, Asia and Oceania); and serplulimab, a PD-1 antibody for extensive-stage small cell lung cancer in-licensed from Shanghai Henlius Biotech Inc. for exclusive commercialization rights in Japan (upfront USD 75 million / approx. 11.6 billion yen, with milestones of up to USD 313 million / approx. 48.6 billion yen). To diversify funding sources for future investment, Eisai completed shelf registration for corporate bond issuance in March 2026 for the first time in 18 years, with a planned issuance amount of 300 billion yen over April 2026-April 2028. On the LEQEMBI franchise, the company highlighted continued transformation of Alzheimer’s disease diagnosis and treatment through blood-based biomarker (BBM) confirmatory diagnosis and the LEQEMBI IQLIK subcutaneous auto-injector (SC-AI): LEQEMBI IQLIK maintenance dosing received U.S. FDA approval in August 2025, and the FDA’s PDUFA action date for initiation-treatment dosing is set for August 24, 2026, while submissions are also under review in Japan and China.

Looking ahead to FY2026, Eisai stated it aims to achieve record-high revenue driven by continued growth of the 3L products, and that LEQEMBI — with SC-AI and BBM now in place — is entering a true expansion phase, targeting enhanced business profitability through continued cost control and prioritized SG&A investment in key markets. The company also expects improved management efficiency from structural reforms implemented in prior years mainly in the U.S. and Europe, and plans to allocate R&D resources to priority pipeline assets including LEQEMBI in Preclinical AD, etalanetug and ledasorexton, targeting core operating profit of 70.0 billion yen in FY2026.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.