Starting in September 2024, Daiichi Sankyo’s shares and pipeline have faced investor doubt since disappointing data on Datroway, one of Daiichi’s key cancer drugs. This disappointment has transformed into doubts about Daiichi’s entire drug development platform and pipeline, which we think is overdone.
Shares have sold off to the point that even Daiichi’s established business lines (which we view as largely de-risked) are undervalued.
Although Datroway and Daiichi’s drug development platform are legitimate sources of uncertainty, they also have upside potential too. Also, at these prices, investors do not need to have strong conviction in these parts of Daiichi’s business.
As of October 20, 2025, the market price is 25% discount to our fair value estimate of JPY 5,500, which is also a 6% discount to our fair value estimate of just Enhertu and Daiichi’s “stable” business lines.
