Eisai (4523)

Equity Research 3 August 2026 | 10:37PM JST

Eisai (4523.T) Earnings Review: 1Q beat driven by strong Lenvima sales; Neutral

4523.T 12m Price Target: ¥4,400 Price: ¥4,656 Downside: 5.5% NEUTRAL Akinori Ueda, Ph.D. Eisai reported 1Q3/27 results at 15:30 JST on August 3 and held a | Goldman Sachs Japan Co., Ltd. results briefing from 16:00. 1Q operating profits of ¥24.7 bn were Tomo Taniguchi above GSe of ¥16.5 bn (see Exhibit 1 for details). We think the profit | Goldman Sachs Japan Co., Ltd. beat was driven by strong sales of key products, especially anticancer drug Lenvima, and we view this progress as likely to raise expectations for near-term earnings.

We maintain our Neutral rating relative to sector coverage. Our Key Data _____________________________________ focus from here is on (1) sales growth and changes in profitability for Market cap: ¥1.3tr / $8.2bn Enterprise value: ¥1.3tr / $8.3bn Alzheimer’s disease (AD) treatment Leqembi (following approval of 3m ADTV: ¥8.1bn / $50.3mn Japan subcutaneous formulations for initial therapy), (2) the potential for Japan Pharmaceuticals and Medical Equipment margin improvement through SG&A/R&D optimization initiatives, M&A Rank: 3 Leases incl. in net debt & EV?: Yes and (3) development progress in pipeline treatments such as AD GS Forecast __________________________________ treatment etalanetug and narcolepsy treatment ledasorexton. 3/26 3/27E 3/28E 3/29E Revenue (¥ bn) ,010.4 Op. profit (¥ bn) New Op. profit (¥ bn) Old Results overview and our estimate revisions Op. profit CoE (¥ bn) -- 70.0 -- -- EPS (¥) New n 1Q results: Sales of ¥234.3 bn and operating profits of ¥24.7 bn EPS (¥) Old were above our estimates of ¥206.5 bn and ¥16.5 bn. We think P/E (X) P/B (X) 1.4 1.4 1.4 1.4 strong sales of key products, led by brisk Lenvima sales (which CROCI (%) 7.5 5.5 5.9 4.8

we believe were also boosted by front-loaded shipments in 6/26 9/26E 12/26E 3/27E some areas of the EMEA region), drove the profit beat. EPS (¥)

GS Factor Profile ______________________________ n FY3/27 guidance: Eisai maintained its initial guidance, but Growth

explained that 1Q progress had exceeded its expectations even Financial Returns excluding forex tailwinds, and that it is progressing smoothly toward achieving its full-year guidance. Multiple

Integrated n Our estimate revisions/target price: We update our sales and cost assumptions in light of 1Q results. We raise our Percentile 20th 40th 60th 80th 100th

FY3/27-FY3/31 operating profit estimates by 1-7%, mainly 4523.T relative to Japan Coverage reflecting a higher sales outlook for Lenvima. We raise our 4523.T relative to Japan Pharmaceuticals and Medical Equipment

12-month target price to ¥4,400 from ¥4,300 (our TP is still Source: Company data, Goldman Sachs Research estimates. See disclosures for details. based on a 12-year DCF model, assuming a WACC of 6% and

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Eisai (4523.T) Income Statement (¥ bn) ___________________________________ NEUTRAL Rating since Dec 22, 2015 3/26 3/27E 3/28E 3/29E Total revenue ,010.4 Cost of goods sold ( ) SG&A ( ) Ratios & Valuation __________________________________________ R&D ( /26 3/27E 3/28E 3/29E Other operating inc./(exp.) -- -- -- -- P/E (X) EBITDA P/B (X) 1.4 1.4 1.4 1.4 Depreciation & amortization ( ) FCF yield (%) 1.3 0.8 2.9 1.6 EBIT EV/EBITDAR (X) Net interest inc./(exp.) 6.9 4.3 3.8 3.7 EV/EBITDA (excl. leases) (X) Income/(loss) from associates -- -- -- -- CROCI (%) 7.5 5.5 5.9 4.8 Pre-tax profit ROE (%) 4.4 6.3 7.6 7.2 Provision for taxes ( ) Net debt/equity (%) (6.5) (2.8) (2.1) 0.3 Minority interest (2.0) (3.1) (3.8) (3.7) Net debt/equity (excl. leases) (%) (6.5) (2.8) (2.1) 0.3 Preferred…