Japan Biopharma 2Q/3QFY26 earnings preview: Flow from tech is creating positive momentum, and some are waiting for positive catalysts

This report is Bernstein's earnings preview for the Japan Biopharma sector covering 2Q/3QFY26. For the sector overall, flow from tech has been supporting momentum recently. Daiichi Sankyo (Outperform, PT JPY4,400): healthy growth of Enhertu and Datroway is expected, but investors are waiting for Datroway Avanzar's topline readout, which should be announced between mid-November and year-end, and the team continues to have conviction in a positive outcome. Takeda (Outperform, PT JPY7,000): focus is on new product launches Orzeyful and Mimrylo, with 2HFY26 remaining catalyst rich. Chugai (Outperform, PT JPY9,700): Foundayo's market uptake should inflect in 4Q2026-1Q2027 as US physicians gain experience and Lilly lowers prices;