Daiichi Sankyo (DSNKY) is an established player in the Japanese pharmaceutical sector, and may well have a winning drug in its pipeline for future profits. However, I am not convincing that this prospect justifies its current valuation.
The prospect to which I refer is the DS-8201 drug, marketed under the brand name Enhertu, which targets HER2 metastatic breast cancer cells. It is an antibody-drug conjugate, or ADC - a type of drug that targets cancer cells while sparing healthy cells. FDA approval for Enhertu was granted in December 2019, as the drug has