Daiichi Sankyo has reported its delayed financial results, saying that high spending on third-party manufacturing and a lower-than-expected take-up of its antibody-drug conjugates for cancer led to a net loss for the fiscal year ended 31st March.
The Japanese pharma group is predicting a net loss of JPY 149.4 billion (around $950 million) for the year, on revenues that came in slightly higher than forecast at JPY 2,123 billion ($13.4 billion), a rise of 12.5% on the previous year.
In its update, Daiichi Sankyo said the loss came about as a consequence of a programme of signing contracts with contract manufacturing organisations to supply its ADCs – such as AstraZeneca-partnered Enhertu (trastuzumab deruxtecan) and Datroway (datopotamab deruxtecan) and MSD-partnered patritumab deruxtecan – that included minimum purchase obligations and the securing of dedicated production lines.
With its own manufacturing capacity limited when these drugs were approaching the market, the company took the decision to secure "manufacturing capacity sufficient to cover maximum demand without risk adjustment, with the highest priority placed on 'ensuring a stable supply to all patients'."
As it turned out, delays in product launch timelines meant that the expected demand did not occur, and while Daiichi Sankyo pivoted to a new, risk-adjusted strategy in the middle of 2025, that came too late to avoid some of the impact of minimum purchase obligations in CMO contracts.
An upgrade to one of Daiichi Sankyo's Japanese plants to supply in-house manufacturing capacity for ADCs, in Odawara, has also been deemed surplus to requirements and cancelled, leading to an impairment charge of JPY 19.3 billion ($123 million) on equipment and fees arising from the cancellation of contracts with construction companies.
Two weeks ago, investors in the company were spooked when it pushed back its annual report, saying it needed more time to assess "the supply plans for its oncology products portfolio and development pipeline in light of rapidly changing business conditions."
Shares in the company fell by around 10% on the announcement, and while they have since tracked back up slightly, the stock is down 26.5% since the start of the year.
While Enhertu has been delivering for Daiichi Sankyo and AZ commercially, there was a delay to the rollout of Datroway in a lung cancer indication, while an application for patritumab deruxtecan in lung cancer was withdrawn last year after disappointing results in a confirmatory study.
Share in Daiichi Sankyo continued to weaken slightly today, suggesting that investors remain nervous, likely because the company's update said it is not yet able to make provision in its accounts for medium- to long-term differences between the minimum purchase obligation and the revised supply plan "due to the high level of uncertainty."
https://pharmaphorum.com/news/manufacturing-hangover-drives-daiichi-sankyo-red
Novo Nordisk A/S saw a 40% surge in sales of its diabetes and weight-loss drugs in India last month, after steep price cuts boosted demand for its branded treatments even as generic GLP-1 therapies flood the market.
Sales of Wegovy, Ozempic and partner-branded versions rose to 32,000 units in April, according to market researcher Pharmarack, marking the first full month of data since generic semaglutide started selling in India. Novo Nordisk slashed starting-dose prices by 36% and 48%, respectively, from April 1, bringing both drugs down to 5,660 rupees ($60).
Wynn Resorts is evaluating whether to push back the launch of its large-scale casino resort in the United Arab Emirates, according to sources cited by Bloomberg, as regional instability linked to the conflict involving Iran continues to affect construction and tourism activity. The project, valued at $5.1 billion, had been expected to open in early 2027, though earlier timelines also pointed to a spring debut next year.
The Las Vegas-based operator has not publicly confirmed any delay but acknowledged it is closely watching developments in the region. Construction work on the site, located on Al Marjan Island in Ras Al Khaimah, faced temporary interruptions after hostilities intensified, although activity resumed in March. Ongoing concerns, including drone and missile activity, have continued to disrupt progress and reduce visitor numbers.
Regional Tensions Disrupt Construction Plans
The possibility of postponement follows increasing security challenges tied to Iranian military actions. Reports indicate that infrastructure across the UAE, including commercial and transport hubs, has been targeted, creating complications for large development projects.
Recent incidents have included strikes damaging luxury resorts in Dubai, roughly an hour from Wynn’s development site. At the same time, the UAE’s defense authorities have reported intercepting drone and missile attacks, underscoring the ongoing risks in the region.
Wynn stated earlier that it remains in communication with both US and UAE officials as it monitors the situation. “The Company continues to be in regular communication with the governments of the United States and Ras Al Khaimah, UAE, so that we can make informed decisions,” the company said. “The Company believes the broad defense posture of the UAE has worked extremely well, and we have confidence in the UAE’s ability to keep its population safe.”
The resort, once completed, will be the first casino property of its kind in the Middle East. Plans for the complex include 22 restaurants, an events venue, private prayer facilities, and a large ballroom overlooking the marina.
Tourism Slowdown Adds Pressure
In addition to construction challenges, the regional tourism sector has experienced a significant downturn since the conflict escalated. Industry figures suggest visitor activity has fallen sharply, affecting occupancy rates and broader economic expectations for hospitality projects.
MGM Resorts International, which is also developing a hospitality project in Dubai, has acknowledged similar trends but maintains its timeline. CEO Bill Hornbuckle commented on the situation during a recent earnings call, saying: “The tourism business in that particular neck of the world is down to like 15%, give or take.” He added, “I’d say different occupancies are down to that level. So it will take some recovery time no matter what happens here over the next couple of months. But long-term, we remain very excited.”
Despite these short-term pressures, major operators continue to view the UAE as a promising location for future growth in gaming and hospitality.
Strategic Importance of the UAE Market
The UAE has drawn attention from casino operators due to its potential as a new market for gaming. Analysts estimate that, if additional venues are introduced, the country could generate between $3 billion and $5 billion in gross gaming revenue annually. Such figures would place it among the leading global markets in the sector.
Wynn’s Al Marjan Island resort is expected to play a central role in shaping that market. The development forms part of a broader push by the UAE to expand its entertainment and tourism offerings, including large-scale resorts and attractions.
Financial markets have reacted to the geopolitical situation as well. Wynn’s share price declined in the early stages of the conflict but has since recovered, showing gains over the past month.
