4523: Future Alzheimer’s Pipeline And At Home Treatments Will Support Steady Outlook

Analysts have slightly reduced their price target on Eisai, trimming fair value by about $15 per share to approximately $5,012. They cited marginally lower long term growth and profitability assumptions, while maintaining a similar forward earnings multiple.

What's in the News

• Eisai and Biogen completed a rolling supplemental Biologics License Application to the U.S. FDA for Leqembi Iqlik subcutaneous autoinjector as a weekly initiation dose, which could make at home treatment possible from the start for early Alzheimer’s patients if approved (Key Developments).
• New long term modeling data for lecanemab presented at the CTAD conference suggest early and continuous treatment could delay progression from mild cognitive impairment to moderate Alzheimer’s by up to 8.3 years in low amyloid patients, with similar efficacy and safety for subcutaneous and intravenous dosing (Key Developments).
• Eisai and partners have secured multiple global regulatory milestones for Leqembi, including IV maintenance dosing approvals in China and the UK, Health Canada conditional approval, and Therapeutic Goods Administration approval in Australia for early Alzheimer’s disease (Key Developments).
• A new drug application was filed in Japan for Leqembi subcutaneous autoinjector initiation dosing. This positions the therapy as a potential first at home anti amyloid injection from the start of treatment if approved (Key Developments).
• Etalanetug, Eisai’s investigational anti tau antibody E2814, received U.S. FDA Fast Track designation after early data showed reduced tau biomarkers and stabilization or decline in tau PET signal in dominantly inherited Alzheimer’s disease. This supports its potential as a complementary disease modifying therapy alongside lecanemab (Key Developments).

Valuation Changes

• Fair Value Estimate edged down slightly from approximately ¥5,027 to about ¥5,012 per share, reflecting marginally softer long term assumptions.
• Discount Rate remained unchanged at 4.8%, indicating no shift in the perceived risk profile or cost of capital.
• Revenue Growth was effectively stable at around 3.87% annually, with only immaterial modeling refinements.
• Net Profit Margin was essentially flat at roughly 7.49%, with changes too small to materially alter profitability expectations.
• Future P/E nudged down slightly from about 24.1x to 24.0x, aligning the valuation multiple more closely with updated growth and margin forecasts.