ENVALITH
エーザイ株式会社 logo

Eisai Co., Ltd.

4523・Prime Market・Pharmaceuticals

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エーザイ株式会社 logo
Eisai Co., Ltd.4523

Business

Eisai Co., Ltd. is a Japan-originated global pharmaceutical company founded in 1936, comprising 49 consolidated subsidiaries and 1 equity-method affiliate. Its core business is the research and development, manufacturing, and sale of prescription pharmaceuticals, concentrating management resources on the neurology area (Alzheimer's disease, insomnia, epilepsy) and the oncology area (hepatocellular carcinoma, renal cell carcinoma, endometrial cancer, etc.). The company operates globally across five segments—Japan, Americas, China, EMEA, and East Asia & Global South—and revenue for FY2025 reached a record high of ¥825,378 million. Its main customers are medical institutions centered on hospitals and specialist physicians, and it also sells OTC Pharmaceuticals, etc. (such as the Chocola BB series) domestically.

Business Model

Eisai leverages strategic alliances—such as Leqembi (co-developed and co-promoted with Biogen) and Lenvima (co-developed and co-promoted with Merck & Co.)—to diversify development risk while maximizing revenue through its five global segment sales networks. The Americas Business (revenue of ¥300,440 million, profit margin of 58.0%) is the largest revenue source, with emerging markets such as China and East Asia driving high growth. License Income and milestone income also function as complementary revenue streams.

Company Strengths

Leqembi (lecanemab) has obtained approval in 53 countries and regions as of the end of FY2025, with FY2025 revenue surging to ¥88.0 billion (up 98.7% year on year). In the US, the subcutaneous auto-injector formulation "LEQEMBI IQLIK" was newly launched in October 2025, and prescription expansion driven by improved convenience is ongoing. The company holds a competitive advantage as the first mover in the early AD treatment area.

Lenvima (lenvatinib) achieved FY2025 revenue of ¥342.5 billion (up 4.3% year on year), and exclusivity in the US continues until June 30, 2030. It holds multiple indications including thyroid cancer, hepatocellular carcinoma, renal cell carcinoma, and endometrial cancer, and the strategic alliance agreement with Merck & Co., valid through March 2036, underpins a stable earnings base.

The Americas Business maintained a segment profit margin of 58.0% and the China Business 45.4%, with major segments sustaining a high-profitability structure. At the end of FY2025, net cash after deducting interest-bearing debt stood at ¥80.1 billion, maintaining a virtually debt-free position, and the ratio of equity attributable to owners of the parent was 62.0%. The company has secured financial soundness while investing ¥158,662 million in R&D expenses (19.2% of revenue).

ENVALITH's Perspective

In FY2026 (ending March 2026), Leqembi revenue expanded sharply to ¥88.0 billion (up 98.7% year on year), but the operating profit margin declined to 5.3% (from 6.9% in the previous fiscal year). Aggressive resource allocation to Leqembi and European structural reform expenses are weighing on profits, while core operating profit excluding one-time expenses rose to ¥50.1 billion (up 110.7% year on year), indicating underlying profitability is improving. For FY2027 (ending March 2027), operating profit is forecast at ¥70.0 billion (up 58.6% year on year), and the focus will be on whether profit leverage emerges as Leqembi's sales expand.

Lenvima is the company's flagship product, accounting for approximately 41% of revenue, but growth is expected to slow in FY2027 (ending March 2027), with sales forecast at ¥345.0 billion (up 0.7% year on year) amid the rise of generics and competing products as well as price containment measures in various countries. On the other hand, if the sNDA review for belzutifan combination therapy in renal cell carcinoma in the U.S. (PDUFA action date October 4, 2026) is approved, it could become a new growth driver. The development pipeline is also being streamlined, with the discontinuation of the esophageal cancer Phase III trial and the conclusion of trials for MORAb-202 and E7386, putting the results of R&D efficiency improvements to the test.

In FY2026 (ending March 2026), the dividend payout ratio stood at 117.0%, with total dividends paid of ¥45,138 million significantly exceeding profit attributable to owners of parent of ¥38,558 million. For FY2027 (ending March 2027), the company plans to maintain an annual dividend of ¥160 per share (payout ratio of 86.5%) against forecast profit attributable to owners of parent of ¥52,300 million, though the ratio remains at a high level. External factors such as foreign exchange fluctuations (assumption: ¥153 to the US dollar) also have a significant impact on performance, and a stronger yen could pose downside risk to achieving the forecast. The pace of Leqembi's prescription growth and developments regarding U.S. approval for SC-AI as an initial therapy will be key to FY2027 performance.

Growth Strategy

Aiming for long-term growth through two pillars: global formulation innovation and indication expansion for Leqembi, and value maximization for Lenvima

Initial therapy using the subcutaneous auto-injector formulation has received FDA priority review designation for the sBLA in the US (PDUFA action date August 24, 2026), has been filed with the PMDA in Japan, and the BLA has been accepted with priority review designation in China. Approval will enable at-home administration and is expected to accelerate prescription expansion. Leqembi's revenue forecast for FY2027 (ending March 2027) is ¥143.5 billion (up 63.1% year on year).

The combination therapy with Merck's belzutifan achieved a statistically significant improvement in PFS, and the FDA has accepted the sNDA (PDUFA action date October 4, 2026). A filing was also submitted in Japan in March 2026. Approval will help maximize the value of Lenvima within its exclusivity period (through June 2030 in the US).

In partnership with ACTC, the AHEAD 3-45 trial targeting asymptomatic-stage AD is underway in Japan, the US, Europe, and other regions. The trial is progressing well toward topline data acquisition in FY2028 (ending March 2029), and approval could substantially expand the eligible patient population for Leqembi.

Structural reforms are being advanced in Europe, and severance benefits of ¥8,728 million were recorded in the current period. The forecast for FY2027 (ending March 2027) incorporates the cost reduction effects of the European structural reforms, with selling, general and administrative expenses planned to be contained to ¥441.5 billion, up 1.4% year on year. The company aims to transform its overall profit structure through optimization of global operations.

In June 2025, Econavista Co., Ltd. was made a wholly owned subsidiary (acquisition consideration of ¥15,527 million, goodwill of ¥9,545 million), integrating the SaaS-based elderly monitoring system "Life Rhythm Navi" as a core solution of the dementia platform. In China, the company is working to address disparities in medical access by providing online medical consultations through Yin Fa Tong.

Last updated: July 19, 2026