Eisai Co., Ltd.

Eisai reported Q1 fiscal 2026 revenue of JPY 234.3 billion, up 15.6% year over year, operating profit of JPY 24.7 billion, up 19.2%, gross profit of JPY 183.2 billion, up 14.5%, and profit for the period of JPY 18.2 billion, up 26%. Cost of sales was JPY 51.1 billion and the cost of sales ratio was 21.8%; R&D expenses were JPY 43.7 billion, up 12.7%, and SG&A was JPY 114.8 billion, up 14.6%. Management said the company is steadily progressing toward its FY2026 forecast, with revenue at 26.5%-27% of plan and operating profit/core operating profit at 35.3% of plan. No new full-year numerical guidance was changed on the call; management reiterated FY targets for LENVIMA (JPY 345 billion), DAYVIGO (JPY 73.5 billion), and LEQEMBI (JPY 143.5 billion).

COO Haruo Naito said the company’s growth is being driven by the three core products, with LEQEMBI, DAYVIGO and LENVIMA all expanding and supporting both revenue and profit. He emphasized that Eisai is not just selling products but building the access infrastructure needed for LEQEMBI, including reimbursement, diagnosis flow, specialty pharmacy coordination and home administration support. His tone was confident and strategic, with repeated focus on maximizing LEQEMBI’s value, expanding the orexin platform, and building the next wave of AD therapies around amyloid, tau and neurodegeneration.

CFO Takuya Oyama highlighted that Q1 results were stronger than the plan, even after excluding foreign exchange benefits, and said the quarter was a “good start” toward the full-year forecast. He pointed to lower product-level cost ratios for LEQEMBI and DAYVIGO, and said LENVIMA’s strong revenue, including FX support, also helped the margin profile. He noted that forex added JPY 18.9 billion to revenue year over year and a JPY 1.38 billion positive impact to operating profit, but said the operating profit impact was limited because both revenue and many costs are foreign-currency denominated.

Analysts focused on why gross profit and cost of sales were better than expected, the impact of foreign exchange, and whether LEQEMBI IQLIK could contribute quickly and profitably. Management said product-level cost ratios improved, revenue beat the plan even after FX, and the company is investing in LEQEMBI SG&A ahead of further revenue growth in Q2-Q4. On reimbursement, management said it expects IQLIK initiation therapy to follow a scheme similar to maintenance therapy, with eventual formulary inclusion, and on pricing it said IQLIK is designed for parity with IV on a total medical cost basis while reflecting convenience and lower non-drug costs.