Astellas Pharma (4503): 2Q'26 Results: Key Strategic Products Solid, Pipeline Progressing Steadily

JPMorgan maintains Neutral on Astellas Pharma with a December 2027 price target of JPY2,500. For 2Q'26, core operating profit came in at JPY203.5bn (+45.0% YoY), broadly in line with consensus, while reported operating profit of JPY132.1bn (+26.1% YoY) missed on a JPY26.4bn impairment of ASP5541. Full-year guidance was raised: core operating profit to JPY700bn (+26.0% YoY), of which FX contributed less than JPY20bn, so the bulk of the increase stems from key strategic product sales and SMT cost efficiencies; key strategic product sales were lifted to JPY680bn, with PADCEV standing out as US MIBC penetration beat company assumptions. On the pipeline, ASP2138 (1L gastric cancer) and setidegrasib (2L NSCLC) entered Phase 3 and early-stage assets entered Phase 1, and management now sees the 30% core operating margin target being reached one year earlier.