Daiichi Sankyo's Profit Surges 16% on Oncology Sales

Daiichi Sankyo’s first-half profits rose 15.8% year-over-year, to ¥1,515 billion, as strong sales of its cancer drugs, Enhertu and Datopotamab, propelled a 19.7% increase in overall revenue to ¥1.167 trillion. The results, for the six months ending September 30, demonstrate the increasing impact of the company's strategic focus on oncology, offsetting declines in other business units.

The revenue jump was further amplified by favorable currency exchange rates, contributing ¥73.9 billion to the top line. Core operating profit increased even more substantially, rising 46.9% to ¥2.213 trillion, although operating profit growth was slightly tempered by business restructuring expenses in the EU. The success of Enhertu and Datopotamab in both domestic and international markets was explicitly cited as the primary driver of this performance.

Alongside the strong financial results, Daiichi Sankyo is moving forward with the sale of its consumer healthcare business to Suntory Holdings. The phased sale, beginning in 2026 and expected to be completed by 2029, will allow Daiichi Sankyo to concentrate resources on its core pharmaceutical operations. The company expects to receive ¥246.5 billion from the transaction. This divestiture aligns with a broader industry trend of pharmaceutical companies streamlining their portfolios to focus on higher-margin, specialized areas.

The company also issued ¥116 billion in unsecured corporate bonds, receiving high credit ratings from both Moody’s (A2) and R&I (AA), indicating confidence in its financial stability. Despite the positive results, Daiichi Sankyo faces ongoing risks related to currency fluctuations and global economic conditions. The company's focus on oncology appears to be successfully navigating these challenges, delivering significant profit growth and positioning it for continued expansion in a competitive market.