Editing Daiichi Sankyo Company, Limited (section)

== Macro Analysis ==

The global macroeconomic environment has a significant influence on the performance of Daiichi Sankyo and the pharmaceutical industry as a whole.

A PESTLE Analysis of the Pharmaceutical Industry shows that the future holds mixed results.<ref>https://pestleanalysis.com/pestle-analysis-of-pharmaceutical-industry/</ref>

=== Economic ===
The recent inflation print shows that the annual inflation rate of the yen has dropped to 3% from 4% the previous month, settling into an acceptable range. This is a positive sign for companies like Daiichi Sankyo as it reduces the cost pressure on raw materials and other inputs for production.

However, over the last 3 years, the value of the yen has dropped in relation to the dollar, meaning costs may rise as indicated by an increase in cost of sales by 3.3% from Q4 2021 to Q4 2023. But this appears to be a negligible factor in Daiichi Sankyo's success, as the company experienced in increase in operating profit of 89% over the same period.

=== Sociocultural ===
Changing sociocultural factors such as an aging population and growing obesity rates has a positive impact on Daiichi Sankyo, as it specialises in a variety of pharmaceuticals associated with treating diseases linked to aging (e.g. Anti-hypertensives, Anti-epileptics, and drugs for: Type 2 diabetes, pain, bone erosion associated with rheumatoid arthritis, lowering cholesterol, etc.)<ref>https://www.daiichisankyo.com/products/</ref>

=== Technological ===
A growing biotechnology industry positively impacts the company,  with the beginning of human trials of drugs designed by AI indicating a potential revolution in drug discovery. With this inevitably leading to significant investment and profit for companies within the pharmaceutical industry. <ref>https://www.nasdaq.com/articles/first-human-trials-begin-for-ai-designed-drug</ref>

AstraZeneca, a partner of Daiichi Sankyo for an antibody-based tumour treatment<ref>[https://www.astrazeneca.com/media-centre/press-releases/2020/astrazeneca-and-daiichi-sankyo-enter-collaboration-to-develop-and-commercialise-new-antibody-drug-conjugate.html#! https://www.astrazeneca.com/media-centre/press-releases/2020/astrazeneca-and-daiichi-sankyo-enter-collaboration-to-develop-and-commercialise-new-antibody-drug-conjugate.html#!]</ref>, has signed a research collaboration and licensing deal with Quell Theraputics. This company uses genetic engineering of regulatory T-cells to treat autoimmune diseases, a new use of cell therapy outside of oncology. This, along with other examples of genetic engineering in treatment, alludes to a technological boom in the biotech industry resulting in large growth in the pharmaceutical market.

The S&P 500 gained 2.4% and the NASDAQ jumped 3.3%, indicating a positive market sentiment which could benefit the company. However, the tightening of interest rates, with the US 10-year moving from 4.06% to 3.83%, could increase the cost of borrowing for the company.