Sumitomo Dainippon Pharma Co (DNPUF) AI Stock Analysis

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Sumitomo Dainippon Pharma Co (DNPUF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.21B

Dividend YieldN/A

Average Volume (3M)11.00

Price to Earnings (P/E)15.2

Beta (1Y)0.58

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees4,980

SectorHealthcare

Sector Strength42

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)0.04

Shares Outstanding397,900,150

10 Day Avg. Volume0

30 Day Avg. Volume11

Financial Highlights & Ratios

PEG Ratio-0.06

Price to Book (P/B)2.31

Price to Sales (P/S)0.00

P/FCF Ratio-23.03

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.23

Price Target Upside11.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Sumitomo Dainippon Pharma Co Business Overview & Revenue Model

Company DescriptionSumitomo Pharma Co., Ltd. manufactures and sells pharmaceuticals, food ingredients and additives, veterinary medicines, and others in Japan, North America, China, and internationally. The company offers pharmaceutical products, such as therapeutic agents for Parkinson's disease, depression, type 2 diabetes, systemic fungal infection, hypertension, pruritus, chronic obstructive pulmonary disease, angina pectoris, and arrhythmia. It also provides products for atypical antipsychotic, antiepileptic, carbapenem antibiotic, and gastrointestinal; and Anderson-Fabry disease drugs. In addition, the company offers food ingredients and additives, such as polysaccharides, as well as seasonings, such as soups or bouillons; and chemical product materials, which include pharmaceutical excipients, personal care products, coatings and industrial materials, and electronic materials. Further, it provides veterinary medicines for companion animals, such as dogs and cats; and livestock comprising cattle, swine, poultry, horses, and aquacultured fish. Sumitomo Pharma Co., Ltd. has partnerships with Healios K.K.; Keio University; RIKEN; the Center for iPS Cell Research and Application; Kyoto University; and Aikomi Co., Ltd., as well as a joint development agreement with SanBio Company Limited; and collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. It also has a strategic alliance with Roivant Sciences Ltd. The company was formerly known as Sumitomo Dainippon Pharma Co., Ltd. and changed its name to Sumitomo Pharma Co., Ltd. in April 2022. The company was founded in 1897 and is headquartered in Osaka, Japan. Sumitomo Pharma Co., Ltd. is a subsidiary of Sumitomo Chemical Company, Limited.

How the Company Makes Money

Sumitomo Dainippon Pharma Co Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q3-2024)

% Change Since: -10.72%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Negative

The earnings call highlighted promising developments in the oncology and regenerative medicine pipelines but was overshadowed by significant financial losses, decreased revenue across all segments, and underperformance of key products, leading to a revised downward financial forecast. The call focused on strategic adjustments to address market challenges and improve profitability.

Q3-2024 Updates

Positive Updates

Development Progress in iPS Cell-Derived Therapies

Significant progress in clinical development in regenerative medicine, particularly in Parkinson's disease using iPS cell-derived dopaminergic progenitor cells. The University of California San Diego began a study in November 2023, with ongoing trials in Japan.

Oncology Pipeline Advancements

Promising interim results for TP-3654 in myelofibrosis and DSP-5336 in acute leukemia, with observed reductions in spleen volume and bone marrow blasts respectively, and good tolerability in trials.

Negative Updates

Significant Revenue Decline

Revenue was JPY 235 billion, a decrease of JPY 225.2 billion compared to the same period last year, with declines across all segments, including Japan, North America, and Asia.

Core Operating and Net Profit Losses

Core operating profit decreased by JPY 139.3 billion year-on-year, resulting in a loss of JPY 96.4 billion. Net profit attributable to owners also decreased, resulting in a loss of JPY 117.7 billion.

Challenges in North America

The North America segment saw a revenue decrease of JPY 164 billion compared to the same period last year, heavily impacted by the end of the exclusive sales period of LATUDA.

Underperformance of Key Products

Significant downward revisions for ORGOVYX, MYFEMBREE, and GEMTESA forecasts due to slower than expected market penetration and increased competition.

Financial Forecast Revisions

Revenue forecast revised down by JPY 45 billion, with core operating profit expected to see a reduction of JPY 72 billion, forecasting a loss of JPY 134 billion.

Potential Impairment Concerns

Possibility of impairment for key products due to underperformance and downward revisions of their outlook.

Company Guidance

During the Q3 2024 earnings call for Sumitomo Pharma, several key financial metrics and strategic adjustments were discussed. Revenue for Q3 2023 was reported at JPY 235 billion, which marked a significant decrease of JPY 225.2 billion from the same period in the previous year. The decline was attributed to reduced revenue across all segments, including Japan, North America, and Asia. Despite a decrease in SG&A expenses and some operating income from the sale of shares in Sumitomo Pharma Animal Health, the core operating profit decreased by JPY 139.3 billion, resulting in a core operating loss of JPY 96.4 billion. The company also recorded a JPY 20.5 billion nonrecurring expense related to restructuring in North America, contributing to an operating loss of JPY 117.7 billion. Additionally, profit before taxes saw a year-on-year decrease of JPY 107.4 billion, resulting in a quarterly loss of JPY 105.2 billion. Consequently, the net profit attributable to owners of the parent decreased significantly, resulting in a loss of JPY 117.7 billion. The full-year financial forecast was revised downward, with expectations for revenue at JPY 317 billion, a reduction of JPY 45 billion from previous forecasts. The forecasted core operating profit was expected to see a reduction of JPY 72 billion, projecting a loss of JPY 134 billion. The company is also anticipating a decrease in profit attributable to owners by JPY 61 billion, forecasting a loss of JPY 141 billion. The underperformance was largely due to the North American segment, where key products like ORGOVYX, MYFEMBREE, and GEMTESA fell short of their sales plans.

Sumitomo Dainippon Pharma Co Financial Statement Overview

Summary

Sumitomo Dainippon Pharma Co. faces significant financial challenges, with declining revenues, increasing losses, and cash flow issues. The company's high leverage and negative profitability metrics suggest operational and financial restructuring may be necessary. While the asset base provides some stability, strategic changes are crucial to address the ongoing financial distress.

Income Statement

Negative

The income statement shows significant challenges with declining revenues and negative profitability. The TTM data indicates a substantial negative EBIT and EBITDA margin, suggesting operational inefficiencies. There is a noticeable deterioration in revenue and net income from previous periods, highlighting potential systemic issues.

Balance Sheet

Neutral

The balance sheet reflects high leverage with a debt-to-equity ratio that has increased over time, indicating increased financial risk. The equity ratio has declined, showcasing a shrinking equity base relative to total assets. However, the company's asset base remains substantial, which provides some stability amid financial pressures.

Cash Flow

Negative

The cash flow statement reveals severe cash flow challenges, with negative operating and free cash flows in the TTM period, indicating liquidity issues. The ratios of operating cash flow and free cash flow to net income are unfavorable, underscoring challenges in converting earnings into cash.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
372.71B	314.56B	555.54B	560.03B	515.95B	482.73B
	Gross Profit
225.56B	187.98B	376.63B	402.91B	378.18B	353.06B
	EBIT
-217.62B	-354.19B	-76.98B	60.23B	71.22B	83.24B
	EBITDA
-172.69B	-281.07B	-3.50B	124.36B	103.11B	100.29B
	Net Income Common Stockholders
-176.04B	-314.97B	-74.51B	56.41B	56.22B	40.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.39B	29.05B	163.65B	238.58B	223.18B	130.43B
	Total Assets
852.12B	907.51B	1.13T	1.31T	1.31T	1.25T
	Total Debt
374.42B	418.88B	334.72B	269.05B	273.82B	297.98B
	Net Debt
289.03B	389.84B	191.24B	66.06B	80.12B	196.27B
	Total Liabilities
686.00B	751.37B	727.96B	634.44B	659.95B	620.77B
	Stockholders Equity
166.12B	156.06B	406.75B	607.89B	580.57B	529.49B
Cash Flow		Free Cash Flow
-16.63B	-257.62B	-805.00M	17.75B	124.80B	32.78B
	Operating Cash Flow
-5.67B	-241.89B	11.94B	31.24B	135.60B	46.13B
	Investing Cash Flow
92.14B	33.04B	52.42B	-18.28B	8.88B	-312.68B
	Financing Cash Flow
-39.56B	77.85B	-146.82B	-21.43B	-57.22B	231.08B

Sumitomo Dainippon Pharma Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNPUF		$2.21B	15.17	13.50%	―	―	―
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
ESALF		$7.70B	23.52	5.34%	4.20%	―	―
HTSUF		$2.24B	16.67	7.90%	1.81%	―	―
SGIOF		$14.87B	11.57	12.99%	2.67%	―	―
TKPHF		$47.11B	61.55	1.50%	4.71%	―	―
4516	75 Outperform	¥238.03B	7.31		3.51%	8.08%	25.92%

* Healthcare Sector Average

Performance Comparison

DNPUF

Sumitomo Dainippon Pharma Co

5.58

3.32

146.90%

ESALF

Eisai Co

25.26

-17.13

-40.41%

HTSUF

Hisamitsu Pharmaceutical Co

32.30

8.48

35.60%

SGIOF

Shionogi & Co

15.20

2.20

16.92%

TKPHF

Takeda Pharmaceutical Co

27.60

1.75

6.77%

JP:4516

Nippon Shinyaku Co., Ltd.

3,534.00

483.74

15.86%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.