What was changed
Daiichi Sankyo's profits declined as the hypertension blockbuster olmesartan lost exclusivity: profit attributable to owners fell to ¥76.0B in FY2020 and ¥67.0B in FY2021.
The decision was to concentrate its five-year business plan on antibody-drug conjugates (ADCs) — Enhertu (trastuzumab deruxtecan), developed jointly with AstraZeneca, plus Dato-DXd and HER3-DXd — and keep raising R&D investment even while profit-sharing payments to AstraZeneca grew.
The FY2023 results show profit attributable to owners of ¥200.7B, up 83.8%, and revenue of ¥1,601.7B, up 25.3%, with growth led by Enhertu and Lixiana; core operating profit rose 59.3% to ¥195.3B.
What it achieved
FY2023 (ended March 2024) profit attributable to owners ¥200.7B, up 83.8%, and revenue ¥1,601.7B (+25.3%), after profit troughed at ¥67.0B in FY2021.
Why it worked
Enhertu approvals and launches in the US, Europe and China expanded sales.
The global AstraZeneca collaboration monetized the ADC platform.
Continued R&D investment built a multi-ADC pipeline.
A weaker yen added a tailwind to overseas revenue.
What can be applied
A pipeline bet can reverse a patent-cliff decline if you co-develop with a global partner and keep investing through the trough: the ADC franchise turned R&D spending into profit growth.
Aftermath
Daiichi Sankyo kept growing through FY2024 as Enhertu became a top oncology product and the ADC portfolio advanced, making it one of the few Japanese pharmas that grew through its patent cliff. The case shows a focused research bet can replace a blockbuster's revenue.
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