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Investing.com -- Eisai Co (OTC:ESAIY). stock rose 0.4% on the day after initially trading in the red, as investors digested the company’s quarterly results that showed strong growth in sales of its Alzheimer’s drug Leqembi.
The Japanese pharmaceutical company reported that global Leqembi sales expanded 269% YoY to ¥23.1 billion in the first quarter. However, this impressive growth included ¥5.3 billion in one-off demand from China, which was previously signaled by partner Biogen (NASDAQ:BIIB) in its recent earnings report. Adjusting for this special demand, underlying Leqembi sales grew 84% to ¥17.8 billion.
Regional performance showed Japan sales of Leqembi reached ¥5.5 billion, up ¥4 billion YoY, achieving 23% of the company’s full-year guidance of ¥24 billion. In the Americas, sales grew 98% YoY to ¥9.1 billion, representing 23% of the ¥40 billion annual target. China sales were particularly strong at ¥7.7 billion, with underlying sales of approximately ¥2.4 billion, putting the company on track to exceed its full-year China guidance of ¥9.5 billion.
The company’s anticancer drug Lenvima saw more modest growth, with sales increasing by ¥0.4 billion to ¥83.9 billion, reaching 27% of the full-year target.
Eisai maintained cost discipline during the quarter, with gross profit margin holding steady at 79% YoY. The SG&A ratio improved to 49.4% from 52.7% in the same quarter last year, helping operating profit margin rise to 10.2% from 7.1% a year earlier.
Jefferies analysts noted: "we judge underlying profits to be just in line, because ¥5.3bn of extraordinary Leqembi demand likely accounts for the majority of the ¥2.9bn OP beat versus consensus."
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