Eisai Co., Ltd.

Eisai reported first-quarter fiscal 2026 revenue of JPY 234.3 billion, up 15.6% year on year, with operating profit of JPY 24.7 billion, up 19.2%. Gross profit was JPY 183.2 billion, up 14.5%; cost of sales was JPY 51.1 billion with a 21.8% cost ratio; R&D expense was JPY 43.7 billion, up 12.7%; and SG&A was JPY 114.8 billion, up 14.6%. Profit for the period was JPY 18.2 billion, up 26%. By product, LENVIMA revenue was JPY 97.3 billion, up 16%; DAYVIGO revenue was JPY 18.9 billion, up 38%; and LEQEMBI revenue was JPY 29.3 billion, up 27%. Management said revenue progress toward the full-year forecast was 26.5%-27% and operating profit progress was 35.3%. For full-year guidance, management reiterated targets of JPY 345 billion for LENVIMA, JPY 73.5 billion for DAYVIGO, and JPY 143.5 billion for LEQEMBI. They said the company is on track to achieve its FY2026 forecast and expects continued LEQEMBI growth from IQLIK and blood-based biomarker adoption. No next-quarter quantitative guidance was given on the call.

Haruo Naito framed the quarter as evidence that Eisai’s three growth products are building a stronger long-term base. He emphasized that LEQEMBI is moving into a new phase with IQLIK, broader access infrastructure, and real-world evidence supporting continued treatment, while BBM should help widen diagnosis and treatment access. His tone was confident and strategic, focused on turning convenience and diagnostic innovation into durable growth.

Takuya Oyama said the quarter benefited from strong organic growth and better-than-planned results, including a positive foreign exchange impact of JPY 18.9 billion on revenue and a JPY 1.38 billion positive impact on operating profit. He noted cost of sales was JPY 51.1 billion, the cost ratio was 21.8%, and that product-level cost ratios for LEQEMBI and DAYVIGO improved; LENVIMA also had a very low cost ratio, helped by FX and product mix. He added that SG&A rose due to profit-sharing tied to LENVIMA and proactive LEQEMBI investment, and said the company aims to reach commercial-basis profitability excluding LEQEMBI R&D expenses.

Analysts focused on why first-quarter margins and operating profit were stronger than expected, and Oyama said the company exceeded its plan even after adjusting for FX, with lower product-level cost ratios and strong LENVIMA revenue. Questions also centered on LEQEMBI IQLIK reimbursement, pricing, and launch timing; management said they expect similar reimbursement treatment to maintenance therapy, that launch is slated for late August, and that prescriptions have already started even though sales have not yet been recorded. On competition, management said LEQEMBI can convert patients from Kisunla in practice and believes IQLIK plus better access infrastructure will strengthen LEQEMBI’s market share.