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Sumitomo Dainippon Pharma Emerged as EWJ’s Biggest Loser

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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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