第一三共's share price has fallen sharply over the past several years, with the focus now on how the current share price reflects future cash flows and the development of new drugs. There is also a view that expansion of Enhertu's therapeutic indications could affect future value.
第一三共's share price has remained weak in recent years, and free cash flow for the last 12 months is negative. The issue is how the current share price reflects this financial position and the outlook for future cash flows.
Regulatory momentum for Enhertu as an adjuvant treatment for HER2-positive early-stage breast cancer could affect the timing of future cash inflows and the need for development investment.