摩根士丹利-日本制药行业投资者演示报告-Investor PresentationJapan Pharmaceuticals-20260409

MorganstanleyMUFGFouNDATloN

April9,202608:03AMGMT

InvestorPresentation|Japan

Pharmaceuticals

lTopPick:DaiichiSankyo

lOW(Preferenceorder):DaiichiSankyo,Takeda,Otsuka,ChugailOW(Mid-capandgeneric):KakenandSawaiGroupHoldings

llndustryView:ln-Line

MoRGANSTANLEyMUFGSEcuRiTiEsCo.,LTd.+ShinichiroMuraoka

EquityAnalyst

Shinichiro.Muraoka@

+8136836-5424

JaeheonLeeEquityAnalyst

Jaeheon.Lee@

+8136836-8443

PHARmAcEuTicALs

Japan

IndustryViewIn-Line

MorganStanleydoesandseekstodobusinesswith

companiescoveredinMorganStanleyResearch.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofMorganStanley

Research.InvestorsshouldconsiderMorganStanley

Researchasonlyasinglefactorinmakingtheirinvestmentdecision.

Foranalystcertificationandotherimportantdisclosures,refertotheDisclosureSection,locatedattheendofthisreport.

+=Analystsemployedbynon-U.S.affiliatesarenotregisteredwithFINRA,maynotbeassociatedpersonsofthememberandmaynotbesubjecttoFINRArestrictionson

communicationswithasubjectcompany,publicappearancesandtradingsecuritiesheldbyaresearchanalystaccount.

2

MorganstanleyMUFGFouNDATloN

TableofContents

Valuation/Performance3-8

PharmaceuticalIndustryStructure9-11

FXsensitivity12

Appendix:Pharmaindustryoverview13-18

SummaryforEachCompany19-36

DaiichiSankyo19

TakedaPharmaceutical20

OtsukaHD21

ChugaiPharmaceutical22

KakenPharmaceutical23

SawaiGroupHoldings24

AstellasPharma25

Eisai26

Shionogi27

SantenPharmaceutical28

Tsumura29

SanBio30

JCR31

TowaPharmaceutical32

OnoPharmaceutical33

NipponShinyaku34

KyowaKirin35

FouNDATloN

MoRGANSTANLEyMUFG3

ValuationsforOurCoverageStocks(1)

SharePriceCompanyRatingPT2026/04/08

YTD

(%)

Last4wks

MktCap(bn)

2024

2025e

2026e

EPS(Adj)2027e

2028e

2029e

2030e

2024

2025e

2026e

P/E*

2028e

2029e

2030e

EPSGrowth

2025e-30e

PEG

Ratio

2027e

TakedaOW¥6,200

¥5,789

19.7%

3.6%

¥9,211

491.2

495.7

488.2

517.1

609.0

664.8

703.5

11.8x

11.7x

11.9x

11.2x

9.5x

8.7x

8.2x

7%

1.6

AstellasEW¥2,050

¥2,624

25.4%

10.8%

¥4,749

165.2

226.5

277.0

217.9

175.7

179.1

214.7

15.9x

11.6x

9.5x

12.0x

14.9x

14.6x

12.2x

-1%

(8.9)

DaiichiSankyoOW¥4,900

¥2,833

-15.4%

0.2%

¥5,366

147.6

174.9

184.7

192.4

246.1

278.5

311.8

19.2x

16.2x

15.3x

14.7x

11.5x

10.2x

9.1x

12%

1.3

EisaiEW¥5,200

¥5,155

10.6%

7.8%

¥1,503

163.8

176.5

243.2

379.3

431.4

482.1

538.4

31.5x

29.2x

21.2x

13.6x

11.9x

10.7x

9.6x

25%

0.8

OtsukaOW¥13,200

¥11,050

24.5%

9.8%

¥6,000

633.8

685.1

565.0

683.0

739.0

779.7

636.9

17.4x

16.1x

19.6x

16.2x

15.0x

14.2x

17.3x

-1%

(13.5)

ChugaiOW¥11,750

¥8,883

7.8%

-7.3%

¥14,915

241.3

274.1

315.9

352.9

390.0

421.6

481.7

36.8x

32.4x

28.1x

25.2x

22.8x

21.1x

18.4x

12%

2.4

KyowaKirinUW¥1,700

¥2,631

4.1%

16.8%

¥1,383

121.4

161.3

175.2

174.2

158.0

154.2

158.8

21.7x

16.3x

15.0x

15.1x

16.7x

17.1x

16.6x

0%

(48.0)

ShionogiEW¥3,900

¥3,606

26.9%

5.5%

¥3,208

203.5

246.4

378.4

412.9

423.1

419.6

346.8

17.7x

14.6x

9.5x

8.7x

8.5x

8.6x

10.4x

7%

1.3

NipponShinyakuUW¥2,600

¥5,294

-6.3%

9.2%

¥372

483.4

417.8

383.7

242.7

42.3

52.7

52.7

11.0x

12.7x

13.8x

21.8x

125.2x

100.5x

100.5x

-34%

(0.4)

KakenOW¥5,200

¥4,220

5.1%

0.7%

¥186

365.4

72.7

21.7

37.5

61.1

144.9

367.6

11.5x

58.1x

194.0x

112.6x

69.1x

29.1x

11.5x

38%

5.1

OnoUW¥1,950

¥2,547

17.2%

2.6%

¥1,270

192.4

194.6

187.3

149.4

180.9

178.2

172.0

13.2x

13.1x

13.6x

17.0x

14.1x

14.3x

14.8x

-2%

(5.6)

SantenEW¥1,900

¥1,931

18.8%

20.6%

¥622

129.3

120.7

139.1

146.2

163.0

184.8

212.6

14.9x

16.0x

13.9x

13.2x

11.8x

10.5x

9.1x

12%

1.2

TsumuraEW¥4,400

¥3,838

-5.9%

-0.4%

¥295

427.1

368.9

410.8

435.8

429.2

452.9

487.2

9.0x

10.4x

9.3x

8.8x

8.9x

8.5x

7.9x

6%

1.6

JCREW¥550

¥580

-18.5%

-5.3%

¥75

(38.4)

15.3

3.2

29.1

0.8

14.5

24.2

-15.1x

37.8x

179.5x

19.9x

718.2x

39.9x

23.9x

10%

18.8

SanBioEW¥1,900

¥2,110

24.9%

-2.6%

¥165

(41.5)

(52.6)

(72.2)

(32.5)

(35.1)

(21.0)

40.6

-

-

-

-

-

-

52.0x

-

-

SawaiOW¥3,000

¥2,268

-3.9%

3.4%

¥262

137.6

160.7

193.5

219.1

238.2

259.9

284.1

16.5x

14.1x

11.7x

10.3x

9.5x

8.7x

8.0x

12%

1.0

TowaEW¥4,500

¥4,300

18.1%

3.4%

¥222

385.7

451.7

452.0

499.7

516.0

533.3

537.3

11.1x

9.5x

9.5x

8.6x

8.3x

8.1x

8.0x

4%

2.7

PharmaAvg.(Weighted)

629

22.6x

19.7x

18.7x

16.8x

17.1x

14.8x

14.1x

7%

2.8

USPharma(coveredbyTerenceFlynn)

AbbvieOW$270.0

$211.59

-7.4%

-8.0%

$374.1

$10.1

$10.0

$15.3

$17.4

$19.5

$20.7

$21.2

20.9x

21.2x

13.9x

12.1x

10.9x

10.2x

10.0x

16%

1.3

BMYUW$40.0

$59.20

9.8%

-0.8%

$120.6

$1.2

$6.1

$6.3

$5.8

$4.9

$4.2

$4.7

51.3x

9.6x

9.3x

10.3x

12.1x

14.0x

12.6x

-5%

(1.8)

JNJOW$262.0

$241.30

16.6%

0.4%

$581.2

$10.0

$10.8

$11.6

$12.9

$14.8

$16.7

$18.2

24.2x

22.3x

20.7x

18.7x

16.3x

14.4x

13.2x

11%

2.0

EliLillyOW$1,313.0

$953.30

-11.3%

-3.7%

$900.7

$13.0

$24.2

$37.1

$43.8

$55.5

$62.1

$71.3

73.4x

39.4x

25.7x

21.8x

17.2x

15.4x

13.4x

24%

1.6

MerckEW$109.0

$123.18

17.0%

7.2%

$304.5

$7.7

$8.9

$5.2

$9.9

$11.0

$8.9

$9.5

16.1x

13.8x

23.8x

12.4x

11.2x

13.8x

12.9x

1%

10.9

PfizerEW$27.0

$27.47

10.3%

1.6%

$156.2

$3.1

$3.2

$2.9

$2.7

$2.1

$2.1

$2.3

8.8x

8.5x

9.4x

10.2x

13.2x

13.3x

12.1x

-7%

(1.3)

USPharmaAvg.(Weighted)

41.2x

25.9x

20.6x

17.1x

14.8x

14.0x

12.6x

14%

1.9

EUPharma(coveredbySaritaKapilaandThibault

Boutherin)

GBp15,216

10.3%

4.9%

$317.4

$8.2

$9.2

$10.2

$11.8

$12.6

$14.3

$16.8

24.9x

22.3x

20.0x

17.3x

16.3x

14.3x

12.2x

13%

1.7

AZNOWGBp16,500

GSKUWGBp1,700

GBp2,125

10.3%

4.3%

$116.0

GBp159.4

GBp172.0

GBp182.4

GBp195.1

GBp193.7

GBp192.6

GBp185.3

13.3x

12.4x

11.7x

10.9x

11.0x

11.0x

11.5x

2%

8.2

NovartisOWCHF135

CHF121

10.6%

1.3%

$312.7

$7.8

$9.0

$8.6

$9.8

$11.2

$12.5

$13.2

19.7x

17.1x

17.8x

15.7x

13.7x

12.3x

11.6x

8%

2.1

NovoNordiskEWDKK250

DKK240

-26.2%

0.2%

$127.4

DKK22.7

DKK23.1

DKK21.5

DKK21.5

DKK21.5

DKK23.2

DKK25.6

10.6x

10.4x

11.2x

11.2x

11.1x

10.3x

9.4x

2%

5.0

RocheUWCHF295

CHF325

-3.0%

-4.7%

$323.8

CHF18.9

CHF19.6

CHF20.6

CHF21.3

CHF21.8

CHF24.1

CHF24.6

17.2x

16.6x

15.8x

15.2x

14.9x

13.5x

13.2x

5%

3.6

SanofiOWε95

ε81

-2.2%

5.9%

$114.6

ε7.1

ε7.8

ε8.6

ε9.0

ε9.9

ε11.0

ε12.0

11.4x

10.3x

9.4x

9.0x

8.1x

7.4x

6.7x

9%

1.2

EUPharmaAvg.(Weighted)

18.2x

16.6x

15.9x

14.5x

13.6x

12.4x

11.5x

7%

2.3

Biotech(coveredbyTerenceFlynn)

AmgenEW$309.0

$222.0

6.9%

-5.3%

$188.6

$19.8

$21.8

$23.4

$24.7

$27.8

$29.8

$31.8

11.2x

10.2x

9.5x

9.0x

8.0x

7.5x

7.0x

8%

1.3

GileadOW$171.0

$141.5

15.3%

-1.1%

$175.7

$4.6

$8.1

$8.5

$9.9

$10.7

$12.2

$13.7

30.5x

17.4x

16.6x

14.2x

13.3x

11.6x

10.3x

11%

1.6

BiogenEW$190.0

$179.9

2.2%

-2.7%

$26.4

$16.5

$15.3

$16.3

$14.0

$13.9

$9.8

$10.8

10.9x

11.7x

11.0x

12.9x

12.9x

18.4x

16.7x

-7%

(1.7)

VertexOW$596.0

$443.9

-2.1%

-2.8%

$112.8

$0.4

$18.5

$19.0

$21.5

$24.5

$29.1

$34.5

1046.2x

24.0x

23.4x

20.6x

18.1x

15.2x

12.8x

13%

1.8

RegeneronEW$769.0

$775.5

0.5%

2.1%

$80.6

$45.6

$44.2

$46.1

$53.0

$61.2

$69.3

$74.8

17.0x

17.5x

16.8x

14.6x

12.7x

11.2x

10.4x

11%

1.6

BiotechAvg.(Weighted)

217.6x

16.1x

15.4x

13.8x

12.4x

11.2x

10.0x

10%

1.7

Note1:ForJapanesecompanies,FYendsinMarchexcludingChugai,KyowaKirinandOtsuka(DecFY-end).Note2:EPSestimatesforKaken,Eisai,JCR,andSanBioareonareportedbasis,andEPSestimatesforothercompaniesexcludeone-offfactorsandgoodwillamortization.Note3:e=MorganStanleyResearchestimates.OW=Overweight,EW=Equal-weight,UW=UnderweightSource:FactSet,Company,MorganStanleyResearch

4

ValuationsforOurCoverageStocks(2)

SharePriceYTDLastMktCapEV(24)EV/EBITDANetDebt/EBITDAP/BDY

CompanyRatingPT2026/04/08

(%)

4wks

(bn)

(bn)

2024

2025e

2026e

2027e

2028e

2029e

2030e

2024

2025e

2026e

2027e

2028e

2029e

2030e

2024

(%)

TakedaOW¥6,200¥5,789

19.7%

3.6%

¥9,211

¥13,342

10.9x

9.7x

10.1x

9.7x

8.6x

8.0x

7.7x

3.4x

2.8x

2.7x

2.4x

1.9x

1.5x

1.2x

1.3x

3.4%

AstellasEW¥2,050¥2,624

25.4%

10.8%

¥4,749

¥5,362

21.6x

9.2x

8.0x

10.1x

12.3x

12.1x

10.2x

2.5x

0.7x

0.2x

-0.5x

-1.2x

-1.6x

-1.7x

3.1x

2.8%

DaiichiSankyoOW¥4,900¥2,833

-15.4%

0.2%

¥5,366

¥4,746

11.8x

10.9x

9.8x

9.4x

7.6x

6.8x

6.1x

-1.5x

-1.4x

-1.3x

-1.3x

-1.2x

-1.2x

-1.3x

3.3x

2.1%

EisaiEW¥5,200¥5,155

10.6%

7.8%

¥1,503

¥1,425

15.1x

14.3x

11.6x

8.4x

7.7x

7.0x

6.5x

-0.8x

-0.7x

-0.6x

-0.7x

-0.9x

-1.1x

-1.4x

1.7x

3.1%

OtsukaOW¥13,200¥11,050

24.5%

9.8%

¥6,000

¥5,637

13.1x

9.5x

10.9x

9.4x

8.7x

8.2x

9.5x

-0.8x

-0.7x

-1.1x

-1.1x

-1.3x

-1.6x

-2.1x

2.2x

1.1%

ChugaiOW¥11,750¥8,883

7.8%

-7.3%

¥14,915

¥13,919

23.9x

21.1x

18.6x

16.8x

15.3x

14.2x

12.5x

-1.7x

-1.5x

-1.7x

-1.9x

-2.2x

-2.4x

-2.5x

7.7x

1.1%

KyowaKirinUW¥1,700¥2,631

4.1%

16.8%

¥1,383

¥1,136

9.2x

8.4x

7.7x

7.7x

8.3x

8.5x

8.3x

-2.0x

-1.6x

-1.7x

-2.0x

-2.3x

-2.6x

-2.7x

1.6x

2.2%

ShionogiEW¥3,900¥3,606

26.9%

5.5%

¥3,208

¥2,833

16.0x

12.0x

6.4x

18.7x

18.7x

18.7x

18.7x

-2.1x

1.2x

0.3x

0.0x

0.0x

0.0x

0.0x

2.3x

1.7%

NipponShinyakuUW¥2,600¥5,294

-6.3%

9.2%

¥372

¥317

7.5x

7.5x

8.1x

11.6x

31.0x

28.5x

28.5x

-1.3x

-1.7x

-2.0x

-3.4x

-9.2x

-7.9x

-7.4x

1.4x

2.3%

KakenOW¥5,200¥4,220

5.1%

0.7%

¥186

¥120

5.1x

23.1x

35.3x

29.3x

22.2x

12.1x

5.5x

-2.8x

-11.6x

-16.8x

-12.1x

-8.0x

-4.1x

-2.0x

1.1x

4.5%

OnoUW¥1,950¥2,547

17.2%

2.6%

¥1,270

¥1,195

13.8x

9.9x

10.1x

11.8x

9.8x

10.0x

10.2x

-0.9x

-0.6x

-1.1x

-1.7x

-1.8x

-2.2x

-2.7x

1.5x

3.1%

SantenEW¥1,900¥1,931

18.8%

20.6%

¥622

¥559

7.2x

8.0x

7.3x

7.0x

6.4x

5.7x

5.1x

-0.8x

-1.3x

-1.6x

-1.9x

-2.1x

-2.3x

-2.4x

2.3x

1.9%

TsumuraEW¥4,400¥3,838

-5.9%

-0.4%

¥295

¥292

5.3x

5.7x

5.1x

4.7x

4.6x

4.4x

3.9x

-0.1x

1.1x

2.2x

2.8x

3.4x

3.7x

3.6x

1.1x

3.5%

JCREW¥550¥580

-18.5%

-5.3%

¥75

¥100

-30.6x

25.0x

23.8x

11.6x

23.8x

15.9x

12.8x

-7.6x

5.9x

5.7x

2.7x

5.7x

4.1x

3.5x

1.5x

3.4%

SanBioEW¥1,900¥2,110

24.9%

-2.6%

¥165

¥167

-

-

-

-

-

-

39.5x

-0.7x

-3.7x

-1.2x

-0.9x

-0.3x

0.9x

0.2x

84.9x

0.0%

SawaiOW¥3,000¥2,268

-3.9%

3.4%

¥262

¥313

16.2x

8.6x

6.5x

5.9x

5.4x

5.0x

4.6x

2.7x

0.7x

0.7x

0.8x

0.7x

0.6x

0.4x

1.5x

2.3%

TowaEW¥4,500¥4,300

18.1%

3.4%

¥222

¥393

10.1x

8.7x

7.9x

7.4x

7.3x

7.1x

7.0x

4.4x

3.7x

3.0x

2.4x

2.0x

1.7x

1.4x

1.2x

1.6%

PharmaAvg.(Weighted)

16.5x

13.2x

12.0x

12.1x

11.4x

10.8x

10.2x

-0.1x

-0.2x

-0.4x

-0.7x

-0.9x

-1.2x

-1.3x

4.1x

USPharma(coveredbyTerenceFlynn)

AbbvieOW$270$211.59

-7.4%

-8.0%

$374.13

$435.7

18.1x

17.8x

12.6x

11.0x

9.9x

9.4x

9.2x

2.6x

2.3x

1.2x

0.9x

0.4x

0.0x

-0.4x

112.3x

3.0%

BMYUW$40.00$59.20

9.8%

-0.8%

$120.6

$159.3

27.2x

10.4x

9.3x

9.7x

11.3x

12.8x

11.8x

6.6x

2.3x

1.7x

1.5x

1.3x

1.3x

1.0x

7.3x

4.1%

JNJOW$262.00$241.30

16.6%

0.4%

$581.2

$593.3

20.3x

17.8x

16.2x

15.0x

13.3x

11.9x

11.1x

0.4x

1.0x

0.6x

0.2x

-0.3x

-0.6x

-1.1x

8.1x

2.0%

EliLillyOW$1,313.00$953.30

-11.3%

-3.7%

$900.7

$930.9

60.0x

32.5x

22.0x

19.1x

15.2x

13.6x

11.9x

1.9x

0.8x

0.3x

0.0x

-0.4x

-0.8x

-1.1x

60.5x

0.5%

MerckEW$109.00$123.18

17.0%

7.2%

$304.5

$328.0

12.9x

11.4x

16.1x

10.2x

9.5x

11.6x

11.1x

0.9x

1.1x

1.6x

0.7x

0.3x

0.1x

-0.1x

6.7x

2.5%

PfizerEW$27.00$27.47

10.3%

1.6%

$156.2

$200.1

8.5x

8.5x

8.8x

9.5x

11.9x

12.0x

11.2x

1.9x

1.9x

2.0x

1.9x

2.2x

2.2x

1.9x

1.8x

6.1%

USPharmaAvg.(Weighted)

33.3x

21.5x

16.9x

14.7x

12.8x

12.2x

11.2x

1.8x

1.3x

0.8x

0.4x

0.1x

-0.2x

-0.6x

42.8x

EUPharma(coveredbySaritaKapilaandThibaultBoutherin)

AZNOWGBp16,500GBp15,216

10.3%

4.9%

$317.4

$342.2

19.3x

17.7x

15.5x

13.8x

13.1x

11.7x

10.1x

1.4x

1.2x

0.8x

0.3x

-0.2x

-0.7x

-1.1x

7.8x

1.5%

GSKUWGBp1,700GBp2,125

10.3%

4.3%

$116.0

$129.0

10.6x

10.0x

9.4x

8.8x

8.9x

9.0x

9.4x

1.3x

1.3x

1.3x

1.0x

0.8x

0.6x

0.4x

6.3x

2.8%

NovartisOWCHF135CHF121

10.6%

1.3%

$312.7

$328.8

15.9x

14.2x

14.6x

13.0x

11.7x

10.7x

10.3x

0.8x

0.9x

1.5x

1.2x

0.9x

0.5x

0.3x

5.6x

2.9%

NovoNordiskEWDKK250DKK240

-26.2%

0.2%

$127.4

$197.5

5.5x

5.4x

5.5x

5.4x

5.3x

5.0x

4.7x

0.5x

0.7x

0.8x

0.6x

0.5x

0.4x

0.2x

4.8x

4.1%

RocheUWCHF295CHF325

-3.0%

-4.7%

$323.8

#VALUE!

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

#VALUE!

SanofiOW€95€81

-2.2%

5.9%

$114.6

$123.5

8.3x

7.8x

7.2x

7.0x

6.4x

5.8x

5.4x

0.7x

0.8x

0.7x

0.5x

0.2x

-0.1x

-0.4x

1.3x

4.7%

EUPharmaAvg.(Weighted)

10.7x

9.8x

9.2x

8.4x

7.8x

7.2x

6.7x

0.7x

0.8x

0.8x

0.5x

0.3x

0.0x

-0.2x

4.3x

Biotech(coveredbyTerenceFlynn)

AmgenEW$309.00$222.02

6.9%

-5.3%

$188.6

$236.7

15.1x

13.9x

13.0x

12.7x

11.9x

11.5x

11.1x

3.1x

2.7x

2.3x

1.8x

1.3x

0.8x

0.3x

20.3x

4.0%

GileadOW$171.00$141.54

15.3%

-1.1%

$175.7

$192.4

21.6x

14.2x

13.1x

11.5x

10.9x

9.7x

8.7x

1.9x

1.3x

0.5x

-0.3x

-0.9x

-1.5x

-2.0x

9.2x

2.2%

BiogenEW$190.00$179.90

2.2%

-2.7%

$26.4

$30.3

9.3x

9.7x

9.2x

10.5x

10.8x

14.5x

13.4x

1.2x

0.5x

-0.1x

-1.0x

-1.9x

-3.4x

-3.9x

1.6x

0.0%

VertexOW$596.00$443.92

-2.1%

-2.8%

$112.8

$106.7

118.2x

19.3x

18.3x

16.1x

14.2x

11.9x

10.1x

-6.8x

-1.5x

-2.3x

-2.8x

-3.3x

-3.6x

-3.9x

7.0x

0.0%

RegeneronEW$769.00$775.53

0.5%

2.1%

$80.6

$73.6

13.2x

13.9x

13.4x

11.4x

9.7x

8.6x

8.0x

-1.3x

-1.1x

-1.4x

-1.6x

-1.8x

-2.0x

-2.4x

2.9x

0.0%

BiotechAvg.(Weighted)

36.4x

14.8x

13.9x

12.7x

11.7x

10.8x

9.8x

0.1x

0.8x

0.3x

-0.3x

-0.8x

-1.3x

-1.7x

11.1x

Note1:ForJapanesecompanies,fiscalyearendsinMarchexcludingChugai,KyowaKirinandOtsukaHD(DecFY-end).Note2:e=MorganStanleyResearch,OW=Overweight,EW=Equal-weight,UW=Underweight.

Source:FactSet,Company,MorganStanleyResearch,RefertothefollowingslidesforindustryviewforUS.

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OW:Largecap:DaiichiSankyoTakeda,OtsukaHDandChugai.Mid-cap:Kaken.Generic:Sawai

StreetView:Ratings

AsteııasOnoSantenTakedaEisaiChugaiShionogiKakenTsumuraJCRSanBioSawaiTowa

MSRatingOWEWUWUWUWEWOWEWOWOWEWOWEWEWEWOWEW

PriceTarget4,900.002,050.001,950.001,700.002,600.001,900.006,200.005,200.0013,200.0011,750.003,900.005,200.004,400.00550.001,900.003,000.004,500.00

CurrentPrice(2026/4/8)2,8332,6242,5472,6315,2941,9315,7895,15511,0508,8833,6064,2203,8385802,1102,2684,300

Upside/Downside73%-22%-23%-35%-51%-2%7%1%19%32%8%23%15%-5%-10%32%5%

MarketCap(USDmn)33,145USD31,760USD7,505USD8,628USD2,234USD4,829USD56,479USD9,112USD36,563USD91,591USD19,218USD1,009USD1,840USD448USD1,112USD1,767USD1,326USD

AvgDailyTradedVol(USDmn)148USD80USD32USD19USD10USD12USD137USD40USD67USD133USD45USD4USD11USD4USD43USD5USD3USD

Buy/Overweight94%29%8%17%50%60%63%27%62%63%36%25%25%0%0%78%67%

Hold/Equal-weight6%64%69%33%38%40%31%67%38%31%64%75%75%100%80%11%33%

Sell/Underweight0%7%23%50%13%0%6%7%0%6%0%0%0%0%20%11%0%

DaiichiKyowaNipponOtsuka

SankyoKirinShinyakuHD

SharePricePerformancein2024

Tsumura77%

OtsukaHD63%

Towa43%

Kaken35%

Chugai31%

Sawai24%

S-Pharma21%

Santen15%

D-Sankyo12%

SanBio7%

Takeda3%

KyowaKirin0%

Shionogi-2%

Astellas-9%

N-Shinyaku-20%

Ono-35%

Eisai-39%

JCR-48%

-80%-40%0%40%80%

SharePricePerformancein2025

S-Pharma

SanBio125%

N-Shinyaku42%

Astellas36%

Ono33%

Shionogi28%

Chugai18%

JCR17%

Takeda16%

Sawai10%

Towa8%

Eisai8%

KyowaKirin6%

OtsukaHD3%

Santen0%

Kaken-11%

Tsumura-13%

D-Sankyo-23%

-60%-10%40%90%140%

YTDSharePricePerformanceasof2026/4/8

27%25%25%25%

20%

19%

18%

17%

11%8%

5%

4%

-4%

-6%

-6%

-8%

-15%

-19%

Shionogi Astellas SanBioOtsukaHD Takeda SantenTowa

Ono

Eisai Chugai KakenKyowaKirin Sawai TsumuraN-Shinyaku S-Pharma D-SankyoJCR

-30%-20%-10%0%10%20%30%

Source:FactSet,MorganStanleyResearch,Note:OW=Overweight,EW=Equal-weight,UW=Underweight

+

6

Pharma:ValuationComparison(vsGlobalPharma,vsTOPIX)

P/Etrends:Japan,USandEUPharma

2026/03/31

JPPharmaEUPharmaUSPharma

P/E(x)

45

40

35

30

25

20

15

10

5

Source:FactSet,MorganStanleyResearch,Note:JPPharmaP/EareweightedavgofourcoverageP/Ebasedonour1-1.5yrforwardEPSestimates

TOPIX-relativeP/EofJapanPharma

PharmaIndustryRelativeP/E(vsTOPIX)

32026/03/312.5

2

1.5

1

0.5

0

StockPerformance:Japan,USandEUPharma

2026/03/31

EUPharmaJPPharmaUSPharma

450

400

350

300

250

200

150

100

50

Note:JapanPharma=TOPIXPharma.USPharma=S&PPharmaIndustryIndex.EuropePharma=FactSetPharma.12/30/1999=100.Source:FactSet,MorganStanleyResearch

Ourviewonthepharmaceuticalindustry

Japan

In-Line

US

MajorPharma:In-Line

Biotech:Attractive

EU

In-Line

Source:FactSet,MorganStanleyResearch

MoRGANSTANLEyMUFG