Daiichi Sankyo Cuts FY2026 Profit Forecast on ADC Supply Chain Missteps

Daiichi Sankyo Company, Limited (TSE:4568) has revised downward its earnings guidance for the fiscal year ending March 2026, citing significant contract liabilities and asset write-downs tied to its DXd ADC (antibody-drug conjugate) manufacturing strategy.

ItemBeforeAfterChange
売上収益JPY 2100.0bnJPY 2123.0bn+1.1%
コア営業利益JPY 350.0bnJPY 360.0bn+2.9%
Operating ProfitJPY 335.0bnJPY 229.0bn-31.6%
税引前利益JPY 355.0bnJPY 264.0bn-25.6%
当期利益JPY 288.0bnJPY 260.0bn-9.7%
親会社の所有者に帰属する当期利益JPY 288.0bnJPY 260.0bn-9.7%
基本的1株当たり当期利益JPY 155.59/shareJPY 140.51/shareJPY -15.08/share

The company attributed the revision to two major charges totaling approximately JPY 95.0bn. First, Daiichi Sankyo recorded JPY 75.7bn in loss compensation provisions to contract manufacturers after demand forecasts for its DXd ADC program fell sharply. The company had committed to minimum purchase volumes and dedicated production lines based on inflated projections, but subsequent clinical trial results and delayed market entry narrowed the addressable patient population. Second, the firm wrote down ADC-related equipment investments at its Odawara facility and recorded JPY 19.3bn in contract termination costs after determining continued capital deployment was no longer justified under revised supply plans.

The revisions underscore execution risks in Daiichi Sankyo’s manufacturing strategy and demand forecasting accuracy. While core operating profit (eigyo rieki) rose 2.9% to JPY 360.0bn on modest revenue growth, operating profit contracted 31.6% to JPY 229.0bn due to the one-time charges. Investors should monitor whether additional supply chain adjustments or contract renegotiations emerge, as the company flagged ongoing uncertainty regarding long-term minimum purchase obligations.

Source: Original filing (TDnet) | 日本語版

This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.