Sumitomo Pharma's share price temporarily rose 10% and updated its recent rebound high. The company raised its earnings forecast for the current fiscal year and announced the resumption of its dividend after 4 fiscal years.
Sumitomo Pharma showed signs of a rebound, with its share price temporarily rising as much as 10% to recover to the ¥2,000 range and update its recent rebound high. Technically, the 13-week and 26-week moving averages formed a golden cross, raising expectations of a shift to a medium-term uptrend.
The company revised its earnings forecast for the fiscal year ending March 2027, raising its operating profit forecast from ¥90.0 billion to ¥104.0 billion. The increase was driven by growing sales in the US market, centered on Gemtes, a treatment for overactive bladder, as well as the earnings benefit from the weaker yen.
The company also announced plans to pay an annual dividend of ¥15 for the current fiscal year, marking the resumption of dividends for the first time in 4 fiscal years since the fiscal year ended March 2023, and attracting investor attention.
Overall, the announcement of stronger-than-expected earnings and the resumption of dividends is drawing market attention as a factor supporting the share price.