Sumitomo Dainippon Pharma Emerged as EWJ’s Biggest Loser



EWJ’s bottom stocks

On December 31, 2015, the bottom stocks of the iShares MSCI Japan ETF (EWJ) were Sumitomo Dainippon Pharma, Omron, and Nippon Paint. They fell by 4.2%, 2.9%, and 1.7%, respectively, on that day.

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Why Sumitomo Dainippon Pharma fell

  • Sumitomo Dainippon Pharma’s one patent schizophrenia drug Latuda will expire in 2019, according to the company.
  • The expiry of this patent could significantly damage its earnings, according to Nomura Holdings (NMR).
  • The stock’s performance fell by 4.2% on that day due to this news.
  • The company is moving towards the regenerative medicine business. Japan revised a law to help catch up with the US and Europe in making regenerative medicine products.

Sumitomo Dainippon Pharma’s returns

Currently, the stock is trading at 1,431 yen. Its 52-week high is 1,625 yen. Its 52-week low is 1,138 yen. Its current PE (price-to-earnings) ratio is 33.93x. Its PBV (price-to-book-value) ratio is 1.25x. The stock is trading 4% above its 100-day moving average, at par with its 50-day moving average, and 1% below its 20-day moving average.

EWJ’s major holdings 

EWJ’s major holdings are Toyota Motor (TM), Honda Motor (HMC), Softbank (SFTBY), and Sony (SNE). They returned 0.45%, 0.66%, 0.19%, and 0.8%, respectively, on December 31, 2015.

Read FEZ’s Performance Was Flat in 2015: What Does 2016 Look Like? to learn more.


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