- Eisai is close to delivering treatment to slow the progress of Alzheimer's disease, but on closer inspection, we do not think Aduhelm is the answer.
- Shorter-term earnings visibility may suffer as a result. Earnings outlook longer-term from lecanemab is promising, but any positive impact is not for another 3 years or so.
- If lecanemab does not become a blockbuster drug, Eisai will face problems as its earnings from current core drug Lenvima fall away. We are neutral on the shares.
For further details see:
Eisai: Aduhelm Does Not Look Like A Major Drug Against Alzheimer's