2024-05-16 21:14:05 ET
Eisai Co Ltd. (ESALF)
Q4 2024 Results Conference Call
May 16, 2024 2:00 AM ET
Company Participants
Haruo Naito - CEO, Representative Corporate Officer & Director
Keisuke Naito - SVP, Chief Strategy, Planning & Ecosystem Officer and Acting Global Alzheimer's Disease Officer
Lynn Kramer - VP & Chief Clinical Officer, Alzheimer's Disease and Brain Health
Kazuhiko Tamura - VP & President of Eisai Demand Chain Systems
Toshitaka Asano - VP and Head of Corporate Planning & Business Development HQs
Yasushi Okada - Representative Corporate Officer, COO, Industry Affairs, China Business & Data Integrity
Conference Call Participants
Seiji Wakao - JPMorgan
Kazuaki Hashiguchi - Daiwa Securities
Fumiyoshi Sakai - UBS
Akinori Ueda - Goldman Sachs
Shinichiro Muraoka - Morgan Stanley
Presentation
Unidentified Company Representative
Thank you very much for taking your time out of your busy schedule to attend the financial results presentation session by Eisai Co. Ltd. We would now like to begin the meeting to present financial results from fiscal 2023.
This will be held in hybrid format. Those of you who are in this room, please find four presentation materials, including the presentation deck, financial report and press release that was announced today and the start of the rolling submission for subcutaneous injection and change in the personnel -- or rather announcements of new appointments.
I would now like to introduce the presenter, Mr. Haruo Naito, Representative Corporate Officer and CEO. Mr. Naito, the floor is yours.
Haruo Naito
Let me start my presentation on the financial results for fiscal year 2023. Firstly, please look at the statement of income. Revenue stayed almost flat from a year earlier. The cost of sales has reduced by 3 percentage points. This is due to the ongoing effort for reducing costs and also the improvement of the product mix. As a result, gross profit was up 4% year-on-year and profitability has improved by 3 percentage points.
As regards to expenses, such as R&D expenses, which accounted for 22 points of the revenue, that was the reduction by about 0.5 percentage points. Over the past 2 years or so, Oncology and Neurology Business Group R&D have been integrated. Human biology-based integrated approach has adopted for integration, and as a result, the benefits are now arising as the effect of such integration.
Now for SG&A expenses, which have increased, the major driver for the increase was one thing due to the expansion of LENVIMA. Therefore, there was an increase of expenses regarding shared profit of LENVIMA paid to partner. Currently, we are making utmost efforts in development of LEQEMBI. So with these two major positive investments, we are making SG&A expenses increase....
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Eisai Co Ltd. (ESALF) Q4 2024 Earnings Call Transcript