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Sumitomo Dainippon Pharma Co Ltd (JP:4506)
:4506
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Sumitomo Dainippon Pharma Co
(4506)
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Rating:74Outperform
Price Target:
¥2,338.00
▲(6.27% Upside)
Sumitomo Dainippon Pharma Co's stock is rated positively due to strong technical indicators and an attractive valuation. The financial performance shows recovery signs, but high leverage and low net profit margins are concerns. The absence of earnings call and corporate events data did not impact the score.
Sumitomo Dainippon Pharma Co (4506) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$828.16B
Dividend YieldN/A
Average Volume (3M)5.45M
Price to Earnings (P/E)5.4
Beta (1Y)0.86
Revenue Growth29.92%
EPS GrowthN/A
CountryJP
Employees4,980
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)220.63
Shares Outstanding397,900,150
10 Day Avg. Volume5,265,230
30 Day Avg. Volume5,454,233
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda16.93
Forecast
1Y Price Target
$1,649.98Price Target Upside-25.00% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sumitomo Dainippon Pharma Co Business Overview & Revenue Model
Company DescriptionSumitomo Dainippon Pharma Co., Ltd. is a Japan-based pharmaceutical company primarily engaged in the research, development, manufacturing, and marketing of pharmaceutical products. It operates in various therapeutic areas, including psychiatry, neurology, oncology, and regenerative medicine. The company's core products range from prescription medications to specialty pharmaceuticals, catering to both domestic and international markets. It also invests in innovative drug development through collaborations and partnerships with other biotech firms and research institutions.
How the Company Makes MoneySumitomo Dainippon Pharma generates revenue primarily through the sale of its pharmaceutical products, which include a diverse portfolio of prescription drugs and specialty medications. The company has established key revenue streams from its proprietary drugs, particularly in psychiatry and neurology, as well as from partnerships and collaborations that enhance its drug pipeline. Additionally, the company engages in licensing agreements and joint ventures with other pharmaceutical companies to expand its market reach and share the costs of research and development. Collaborations with biotech firms and research institutions also provide access to innovative therapies, further contributing to Sumitomo Dainippon Pharma's earnings. The company is also involved in the global market, which helps diversify its revenue sources.
Sumitomo Dainippon Pharma Co Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
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 is showing signs of recovery with positive revenue and free cash flow growth. While profitability margins are improving, high leverage remains a concern. The company needs to focus on enhancing net profit margins and managing debt levels to ensure long-term financial stability.Income Statement
Sumitomo Dainippon Pharma Co has shown a positive revenue growth rate of 4.34% in the TTM, indicating a recovery from previous declines. The gross profit margin remains strong at 61.53%, showcasing efficient cost management. However, the net profit margin is relatively low at 5.93%, suggesting room for improvement in profitability. The EBIT and EBITDA margins indicate moderate operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio is high at 1.80, indicating significant leverage, which could pose financial risks. However, the return on equity has improved to 15.48% in the TTM, reflecting better utilization of equity. The equity ratio is not provided, but the overall balance sheet shows a need for cautious financial management.58
Neutral
Cash Flow
The free cash flow growth rate has surged by 321.05% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio of 0.48 indicates a reasonable level of cash flow relative to earnings.72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 416.16B | 398.83B | 314.56B | 555.54B | 560.03B | 515.95B |
| Gross Profit | 253.56B | 245.40B | 187.98B | 376.63B | 402.91B | 378.18B |
| EBITDA | 39.84B | 56.67B | -281.07B | -3.50B | 124.36B | 103.11B |
| Net Income | 18.90B | 23.63B | -314.97B | -74.51B | 56.41B | 56.22B |
Balance Sheet | ||||||
| Total Assets | 733.33B | 742.60B | 907.51B | 1.13T | 1.31T | 1.31T |
| Cash, Cash Equivalents and Short-Term Investments | 20.45B | 39.96B | 36.13B | 143.48B | 202.98B | 193.70B |
| Total Debt | 309.25B | 305.42B | 418.88B | 346.37B | 284.54B | 290.68B |
| Total Liabilities | 557.10B | 573.13B | 751.37B | 727.96B | 634.44B | 659.95B |
| Stockholders Equity | 176.23B | 169.48B | 156.06B | 406.75B | 607.89B | 580.57B |
Cash Flow | ||||||
| Free Cash Flow | 33.69B | 3.47B | -257.62B | -805.00M | 17.75B | 124.80B |
| Operating Cash Flow | 41.36B | 16.50B | -241.89B | 11.94B | 31.24B | 135.60B |
| Investing Cash Flow | -6.68B | 99.75B | 33.04B | 52.42B | -18.28B | 8.88B |
| Financing Cash Flow | -76.37B | -108.84B | 77.85B | -146.82B | -21.43B | -57.22B |
Sumitomo Dainippon Pharma Co Technical Analysis
Positive
2200.00
Price Trends
1701.82
Positive
1406.17
Positive
1061.32
Positive
Market Momentum
65.23
Negative
75.65
Negative
81.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4506, the sentiment is Positive. The current price of 2200 is above the 20-day moving average (MA) of 1780.90, above the 50-day MA of 1701.82, and above the 200-day MA of 1061.32, indicating a bullish trend. The MACD of 65.23 indicates Negative momentum. The RSI at 75.65 is Negative, neither overbought nor oversold. The STOCH value of 81.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4506.
Sumitomo Dainippon Pharma Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.27T | 12.85 | 12.22% | 2.54% | 4.48% | 11.08% | |
76 Outperform | ¥220.25B | 7.21 | ― | 3.79% | 6.83% | 11.59% | |
74 Outperform | $828.16B | 5.35 | 79.99% | ― | 29.92% | ― | |
73 Outperform | ¥297.10B | 15.05 | 7.11% | 2.58% | 3.53% | 38.23% | |
66 Neutral | $1.28T | 25.44 | 5.75% | 3.53% | 6.79% | 22.16% | |
59 Neutral | ¥6.65T | 194.38 | 0.54% | 4.63% | -2.84% | -88.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4506
Sumitomo Dainippon Pharma Co
2,200.00
1,610.00
272.88%
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Sumitomo Dainippon Pharma Co Corporate Events
Sumitomo Pharma Reports Strong Half-Year Results and Raises Full-Year Forecasts
Oct 31, 2025
Sumitomo Pharma Co., Ltd. announced a significant variance between its financial forecasts and actual results for the half-year ended September 30, 2025, and revised its financial forecasts for the year ending March 31, 2026. The company reported stronger-than-expected revenue and profit figures, driven by robust sales of ORGOVYX in North America and lower-than-anticipated expenses. This led to an upward revision of its full-year forecasts, reflecting continued strong sales and improved financial performance.
The most recent analyst rating on (JP:4506) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.
Sumitomo Pharma Completes Strategic Sale in Asian Business Restructuring
Oct 31, 2025
Sumitomo Pharma Co., Ltd. has finalized the sale of 60% of its newly established subsidiary, SMP Jumbi Kabushikigaisya, to Marubeni Global Pharma Corporation as part of a strategic restructuring of its Asian business. This transaction resulted in a gain of approximately 49.043 billion yen, which has been incorporated into the company’s financial results, potentially impacting its market positioning and financial forecasts.
The most recent analyst rating on (JP:4506) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.