Shares of Daiichi Sankyo plunged 10.4% on Thursday after the Japanese pharmaceutical company announced a second delay to its fourth-quarter results and the roll-out of a new medium-term plan.
The company said it will now publish fourth-quarter financial results and its medium-term plan together at 15:30 JST on May 11, followed by a briefing at 18:00 JST that same day. Earlier announcements had already moved the medium-term plan release from April 8 to May 19, while the fourth-quarter results had been slated for April 27.
Daiichi Sankyo said the postponement reflects the need for additional time to estimate a loss compensation provision related to a contract development and manufacturing organization for a development-stage product. The company stated the provision will be booked in fiscal year 2026.
The firm had previously recognised a ¥12.7 billion provision related to HER3 at its second-quarter results.
Analyst reaction
Morgan Stanley analysts weighed in on the limited public information, saying: "While no details have been disclosed, we think this new charge is an additional HER3-related provision. With the subject described as a 'development-stage product,' it is likely not Enhertu or Datroway. We also see a low likelihood that the compound in question is R-DXd or I-DXd."
The analysts added: "If the news does in fact refer to HER3 (market expectations for which are subdued), the impact should essentially be limited. We infer that the company has adjusted its supply outlook due to an additional delay in the HER3 launch timeline."
Market and corporate implications
The move to consolidate the timing of the results and strategy announcement and the company's disclosure that it must calculate an additional loss compensation provision contributed to the steep share-price reaction. The company is scheduling a combined release and briefing on May 11 to provide updated figures and context.
Beyond the immediate stock reaction, the development highlights ongoing uncertainty about the timing and financial implications tied to a development-stage product supplied through a CDMO arrangement. Daiichi Sankyo's earlier posting of a ¥12.7 billion HER3-related charge at second-quarter results provides some precedent, but the ultimate magnitude and timing of the new provision remain to be disclosed when the company reports in May.