Daiichi Sankyo Company, Limited - Revision history

>Eyec at 09:20, 28 July 2023

2023-07-28T09:20:35Z

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	# AstraZeneca PLC, Market Cap - $169.1B -Pharmaceutical company focused on medications for respiratory, cardiovascular, oncology, and other therapeutic areas, competes with Daiichi Sankyo in cardiovascular drugs and oncology treatments.		# AstraZeneca PLC, Market Cap - $169.1B -Pharmaceutical company focused on medications for respiratory, cardiovascular, oncology, and other therapeutic areas, competes with Daiichi Sankyo in cardiovascular drugs and oncology treatments.
	# GlaxoSmithKline (GSK), Market Cap - $57.3B -Multinational pharmaceutical company developing pharmaceutical products, vaccines, and consumer healthcare products.		# GlaxoSmithKline (GSK), Market Cap - $57.3B -Multinational pharmaceutical company developing pharmaceutical products, vaccines, and consumer healthcare products.

	~~'''Technical Analysis'''~~

	== Catalysts ==		== Catalysts ==

>MishaG: /* Dato-DXd */

2023-07-28T08:36:21Z

Dato-DXd

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	=== Dato-DXd ===		=== Dato-DXd ===
	Trophoblast cell surface antigen 2 (TROP2) is highly expressed on a variety of epithelial tumours and correlates with a poor prognosis, Dato-DXd is being developed as a novel TROP2-directed ADC. Dato-DXd demonstrated potent antitumor activity against TROP2-expressing tumors via efficent payload delivery into tumors alongside acceptable safety profiles in preclinical models, suggesting Dato-DXd could be a valuable treatment.		Trophoblast cell surface antigen 2 (TROP2) is highly expressed on a variety of epithelial tumours and correlates with a poor prognosis, Dato-DXd is being developed as a novel TROP2-directed ADC. Dato-DXd demonstrated potent antitumor activity against TROP2-expressing tumors via efficent payload delivery into tumors alongside acceptable safety profiles in preclinical models, suggesting Dato-DXd could be a valuable treatment as it demonstrated a statistically significant improvement in progression-free surivival. '''However,''' recent results suggest that early on in treatment, Dato-DXd is not '''significantly''' better than the current standard of care chemotherapy.

	Daiichi Sankyo has a variety of Dato-DXd products currently in different phases of clinical trials:		Daiichi Sankyo has a variety of Dato-DXd products currently in different phases of clinical trials:

>MishaG: /* 3ADC Conclusion */

2023-07-28T08:31:49Z

3ADC Conclusion

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	=== 3ADC Conclusion ===		=== 3ADC Conclusion ===
	In conclusion, Daiichi Sankyo is developing a '''wide range''' of '''cancer-targeting drugs''', with a primary focus on breast cancer, with Dato-DXds targeting ~~hormone receptor positive, HER2 low~~ or ~~HER2 negative breast cancer, and triple negative breast cancer~~. T-DXds (~~such as~~ ENHERTU®) targeting HER2 positive breast cancer, particularly when a patient has received prior anti-HER2 treatment. HER3-DXds targeting EFGR-positive NSCLC, and particularly in cases where the patient has become resistant to first-line treatments (such as EGFR TKIs).		In conclusion, Daiichi Sankyo is developing a '''wide range''' of '''cancer-targeting drugs''', with a primary focus on breast and lung cancer, with Dato-DXds targeting advanced or metastatic NSCLC. T-DXds (ENHERTU®) targeting HER2 positive breast cancer, particularly when a patient has received prior anti-HER2 treatment. HER3-DXds targeting EFGR-positive NSCLC, and particularly in cases where the patient has become resistant to first-line treatments (such as EGFR TKIs).

	== Leadership ==		== Leadership ==

>MishaG: /* 3ADC Conclusion */

2023-07-28T08:29:20Z

3ADC Conclusion

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	=== 3ADC Conclusion ===		=== 3ADC Conclusion ===
	In conclusion, Daiichi Sankyo is developing a '''wide range''' of '''cancer-targeting drugs''', with a primary focus on breast cancer, with Dato-DXds targeting hormone receptor positive, HER2 low or HER2 negative breast cancer, and triple negative breast cancer. T-DXds (such as ENHERTU®) targeting HER2 positive breast cancer, particularly when a patient has received prior anti-HER2 treatment. HER3-DXds targeting ~~HER3~~ positive ~~breast cancer~~, and particularly in cases where the patient has become resistant to first-line treatments (such as EGFR TKIs).		In conclusion, Daiichi Sankyo is developing a '''wide range''' of '''cancer-targeting drugs''', with a primary focus on breast cancer, with Dato-DXds targeting hormone receptor positive, HER2 low or HER2 negative breast cancer, and triple negative breast cancer. T-DXds (such as ENHERTU®) targeting HER2 positive breast cancer, particularly when a patient has received prior anti-HER2 treatment. HER3-DXds targeting EFGR-positive NSCLC, and particularly in cases where the patient has become resistant to first-line treatments (such as EGFR TKIs).

	== Leadership ==		== Leadership ==

>MishaG: /* HER3-DXd */

2023-07-28T08:26:44Z

HER3-DXd

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	HER3-DXd is a novel ADC, which specifically targets HER3. In a study 57 patients recieving HER3-DXd the <u>objective response rate</u>** was found to be 39% and the median <u>progression-free survival</u>*** was 8.2 months. Responses were also observed in patients with known and unknown EGFR TKI resistance mechanisms<ref>https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9401524/</ref>		HER3-DXd is a novel ADC, which specifically targets HER3. In a study 57 patients recieving HER3-DXd the <u>objective response rate</u>** was found to be 39% and the median <u>progression-free survival</u>*** was 8.2 months. Responses were also observed in patients with known and unknown EGFR TKI resistance mechanisms<ref>https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9401524/</ref>

	A list of T-DXd drugs currently in clinical trials can be found [https://www.daiichisankyo.com/files/rd/pipeline/index/pdf/pipeline2304_en.pdf here] in green.		A list of HER3-DXd drugs currently in clinical trials can be found [https://www.daiichisankyo.com/files/rd/pipeline/index/pdf/pipeline2304_en.pdf here] in green.

>Eyec at 07:13, 28 July 2023

2023-07-28T07:13:02Z

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 == Valuation ==
-== Technical Analysis ==
+To estimate the value of Daiichi Sankyo it is helpful to consider the Market Capitalisation, which is a calculation of the company's total value based on its current stock price and the number of outstanding shares:
 == Catalysts ==

>Eyec at 05:57, 28 July 2023

2023-07-28T05:57:55Z

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	=== Sociocultural ===		=== Sociocultural ===
	Changing sociocultural factors such as an aging population and growing obesity rates has a positive impact on Daiichi Sankyo, as it ~~specializes~~ 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>		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 ===		=== Technological ===
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	== Industry Overview ==		== Industry Overview ==

	Daiichi Sankyo operates in the pharmaceutical industry, which is ~~characterized~~ by high levels of research and development, stringent regulatory environments, and intense competition. The industry is driven by innovation, with companies constantly seeking to develop new treatments and therapies. The industry has been positively impacted by the COVID-19 pandemic, with increased focus on healthcare and accelerated vaccine development.		Daiichi Sankyo operates in the pharmaceutical industry, which is characterised by high levels of research and development, stringent regulatory environments, and intense competition. The industry is driven by innovation, with companies constantly seeking to develop new treatments and therapies. The industry has been positively impacted by the COVID-19 pandemic, with increased focus on healthcare and accelerated vaccine development.

	== Competitor Comparison ==		== Competitor Comparison ==
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	The 5-Year Plan is built upon 4 key strategic pillars<ref>https://www.daiichisankyo.com/files/investors/library/materials/2021/20210405_5th_MTP_E.pdf</ref>, with these being:		The 5-Year Plan is built upon 4 key strategic pillars<ref>https://www.daiichisankyo.com/files/investors/library/materials/2021/20210405_5th_MTP_E.pdf</ref>, with these being:

	=== ~~Maximize~~ 3ADCs ===		=== Maximise 3ADCs ===

	* ~~Maximize~~ ENHERTU and DAto-DXd through strategic alliance with AstraZeneca		* Maximise ENHERTU and DAto-DXd through strategic alliance with AstraZeneca
	* ~~Maximize~~ HER3-DXd without a partner		* Maximise HER3-DXd without a partner
	* Expand work force and supply capacity flexibly depending on changes around product potential		* Expand work force and supply capacity flexibly depending on changes around product potential

	=== Profit growth for current business and products ===		=== Profit growth for current business and products ===

	* ~~Maximize~~ Lixiana profit		* Maximise Lixiana profit
	* Grow Tarlige, Nilemdo, etc. quickly		* Grow Tarlige, Nilemdo, etc. quickly
	* Transform to profit on structure focused on patented drugs		* Transform to profit on structure focused on patented drugs
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	== Products ==		== Products ==
	The company ~~specializes~~ in a diverse array of pharmaceutical goods, with drugs devoted primarily for oncological and cardiovascular treatment, with its 2 flagship products being '''ENHERTU®''' a HER2 directed antibody drug conjugate (ADC) used in the treatment of HER2 positive breast cancer, and '''LIXIANA®''' a direct factor Xa inhibitor, used to prevent blood clots and thus inhibiting risk of heart attack and stroke.<ref>https://www.daiichisankyo.com/products/</ref>		The company specialises in a diverse array of pharmaceutical goods, with drugs devoted primarily for oncological and cardiovascular treatment, with its 2 flagship products being '''ENHERTU®''' a HER2 directed antibody drug conjugate (ADC) used in the treatment of HER2 positive breast cancer, and '''LIXIANA®''' a direct factor Xa inhibitor, used to prevent blood clots and thus inhibiting risk of heart attack and stroke.<ref>https://www.daiichisankyo.com/products/</ref>

	The company entered a collaboration with AstraZeneca in 2020 for a Daiichi Sankyo DXd (potent DNA topoisomerase I inhibitor) antibody drug conjugate (ADC), with $1 billion being paid upfront to Daichii Sankyo from AstraZeneca and a further $5 billion upon achievement of future regulatory and sales milestones. The company is developing a number of DXd drugs, known as the "3ADCs" in the company's R&D pipeline, however the agreement with AstraZeneca concerns '''Dato-DXd''' drugs. Both companies will jointly develop and ~~commercialize~~ Dato-DXds worldwide, except with Daiichi Sankyo holding exclusive rights in Japan<ref>https://www.daiichisankyo.com/media/press_release/detail/index_3126.html</ref>. This is the second global collaboration with AstraZeneca, with the first being a similar agreement for Daiichi Sanyo's ENHERTU'''®'''.		The company entered a collaboration with AstraZeneca in 2020 for a Daiichi Sankyo DXd (potent DNA topoisomerase I inhibitor) antibody drug conjugate (ADC), with $1 billion being paid upfront to Daichii Sankyo from AstraZeneca and a further $5 billion upon achievement of future regulatory and sales milestones. The company is developing a number of DXd drugs, known as the "3ADCs" in the company's R&D pipeline, however the agreement with AstraZeneca concerns '''Dato-DXd''' drugs. Both companies will jointly develop and commercialise Dato-DXds worldwide, except with Daiichi Sankyo holding exclusive rights in Japan<ref>https://www.daiichisankyo.com/media/press_release/detail/index_3126.html</ref>. This is the second global collaboration with AstraZeneca, with the first being a similar agreement for Daiichi Sanyo's ENHERTU'''®'''.

	The 3ADCs are a crucial strategic pillar of Daiichi Sankyo's 5-Year Plan, with oncology making up a significant portion of the revenue target by FY2025 (Total Revenue: 1.6 Tr HPY, Oncology > 600.0 Bn JPY), and ENHERTU'''®''' being a significant portion of oncology revenue (~90%).<ref>https://www.daiichisankyo.com/files/investors/library/materials/2021/20210405_5th_MTP_E.pdf</ref>		The 3ADCs are a crucial strategic pillar of Daiichi Sankyo's 5-Year Plan, with oncology making up a significant portion of the revenue target by FY2025 (Total Revenue: 1.6 Tr HPY, Oncology > 600.0 Bn JPY), and ENHERTU'''®''' being a significant portion of oncology revenue (~90%).<ref>https://www.daiichisankyo.com/files/investors/library/materials/2021/20210405_5th_MTP_E.pdf</ref>
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	\| colspan="5" \|'''Liabilities:'''		\| colspan="5" \|'''Liabilities:'''
	\|-		\|-
	\| colspan="5" \|'''Current Liabilities:'''		\| colspan="5" \|'''Current Liabilities:'''
	\|-		\|-
	\|Current Provisions		\|Current Provisions
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	\|530,263,000		\|530,263,000
	\|-		\|-
	\| colspan="5" \|'''Non-Current Liabilities:'''		\| colspan="5" \|'''Non-Current Liabilities:'''
	\|-		\|-
	\|Long Term Provisions		\|Long Term Provisions
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	\|1,917 million		\|1,917 million
	\|}		\|}
	Daiichi Sankyo has shown strong financial performance with revenues increasing by 22% to 1.278 trillion yen and net income increasing by 63% to 108.95 billion yen for the fiscal year ending in March 2023. The company's ~~current ratio is 2.8, indicating a strong liquidity position. The company's debt ratio is 9.7, which is relatively low, indicating a manageable level of debt.~~		Daiichi Sankyo has shown strong financial performance with revenues increasing by 22% to 1.278 trillion yen and net income increasing by 63% to 108.95 billion yen for the fiscal year ending in March 2023. The company's return on equity (ROE) is 7.8%, indicating efficient use of equity.

	~~The company's return on assets (ROA) is 4.6% and~~ return on equity (ROE) is 7.8%, indicating efficient use of ~~assets and~~ equity~~. The company's gross margin is 71.6% and net profit margin is 8.5%, indicating strong profitability~~.

	== Valuation ==		== Valuation ==

	The company's current price-to-earnings (P/E) ratio is 69.15, which is relatively high, indicating that the company's stock may be overvalued. The company's price-to-book (P/B) ratio is 5.21, which is also relatively high.

	== Technical Analysis ==		== Technical Analysis ==

	The company's stock price has shown some volatility, with a 1-year return of 11.47%. However, the stock price has declined by 6.29% year-to-date. The company's beta is 1.06, indicating that the stock is slightly more volatile than the market.

	== Catalysts ==		== Catalysts ==

>MishaG: /* Leadership */

2023-07-28T05:32:20Z

Leadership

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	== Leadership ==		== Leadership ==
	[[File:Manabe.jpg\|thumb\|189x189px\|Sunao Manabe - Representative Director, Executive Chairperson & CEO[[File:Okuzawa-san 2021.jpg\|thumb\|189x189px\|Hiroyuko Okuzawa - Representative Director, President & COO[[File:Hirashima-san 2021.jpg\|thumb\|187x187px\|Shoji Hirashima - Representative Director, SEO, Head of Japan Business Unit[[File:Ohtsuki-san 2021.jpg\|thumb\|184x184px\|Masahiko Ohtsuki - Director, SEO, Head of Global DX CDXO[[File:Fukuoka-san.jpg\|thumb\|181x181px\|Takashi Fukuoka - Director, SEO, Head of Global Corporate Strategy[[File:Kama-san 2021.jpg\|thumb\|176x176px\|Kazuaki Kama - Outside Director (Independent Director), Chairperson of the Board[[File:Nohara-san 2021.jpg\|thumb\|177x177px\|Sawako Nohara - Outside Director (Independent Director), Chairperson of the Compensation Committee[[File:Komatsu-san 2206.jpg\|thumb\|~~171x171px~~\|Yasuhiro Komatsu - Outside Director (Independent Director)~~]]]]]]]]]]]]]]~~]]		[[File:Manabe.jpg\|thumb\|189x189px\|Sunao Manabe - Representative Director, Executive Chairperson & CEO]][[File:Okuzawa-san 2021.jpg\|thumb\|189x189px\|Hiroyuko Okuzawa - Representative Director, President & COO]][[File:Hirashima-san 2021.jpg\|thumb\|187x187px\|Shoji Hirashima - Representative Director, SEO, Head of Japan Business Unit]][[File:Ohtsuki-san 2021.jpg\|thumb\|184x184px\|Masahiko Ohtsuki - Director, SEO, Head of Global DX CDXO]][[File:Fukuoka-san.jpg\|thumb\|181x181px\|Takashi Fukuoka - Director, SEO, Head of Global Corporate Strategy]][[File:Kama-san 2021.jpg\|thumb\|176x176px\|Kazuaki Kama - Outside Director (Independent Director), Chairperson of the Board]][[File:Nohara-san 2021.jpg\|thumb\|177x177px\|Sawako Nohara - Outside Director (Independent Director), Chairperson of the Compensation Committee]][[File:Komatsu-san 2206.jpg\|thumb\|169x169px\|Yasuhiro Komatsu - Outside Director (Independent Director)]]
	=== Board Of Directors: ===		=== Board Of Directors: ===

>MishaG: /* Leadership */

2023-07-28T05:31:14Z

Leadership

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	'''Yasuhiro Komatsu''' is an '''Outside Director''' and has been since Jun. 2022. He has been a Director and Chairman at a diverse array of Hospitals and Healthcare Departments. Assisting the company with a key strategic pillar, creating shared value with stakeholders, providing insight on creating a "Patient Centric Mindset"		'''Yasuhiro Komatsu''' is an '''Outside Director''' and has been since Jun. 2022. He has been a Director and Chairman at a diverse array of Hospitals and Healthcare Departments. Assisting the company with a key strategic pillar, creating shared value with stakeholders, providing insight on creating a "Patient Centric Mindset"<ref>https://www.daiichisankyo.com/about_us/mission-strength/leadership/</ref>

	== Financials ==		== Financials ==

>MishaG: /* Risk */

2023-07-28T05:23:50Z

Risk

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	== Risk ==		== Risk ==
	Investing in Daiichi Sankyo involves risks such as market risk, regulatory risk, and competition risk. The company's high valuation ratios also indicate a risk of overvaluation.		Investing in Daiichi Sankyo involves risks such as market risk, regulatory risk, and competition risk. The company's high valuation ratios also indicate a risk of overvaluation.

			Investing in any pharmaceutical/biotech company carries significant inherent risk, as the outcome of a drug's success is unknown until it has been filed and approved by the appropriate regulatory bodies. There are many points of failure for a drug's development, with one at every stage of clinical trials and failure could result in a significant drop in share price for the company. Investing solely on the basis of a drug's success is essentially a gamble, as no matter how much research is done, success is never guaranteed until the drug's approval.

			However, Daiichi Sankyo's diverse drug portfolio and drug pipeline may help to mitigate some of the risk associated with this factor.

			Investing into the company with foreign currency also causes risk due to the fluctuation of exchange rates, for example if a foreign company doubles in share price, while the foreign currency's exchange rate also doubles, you will have made no profit, or would have lost money in the case that a company experiences no change in share price

	== Investment Thesis ==		== Investment Thesis ==