- Revenue Growth of +13.4% at Actual Exchange Rates (AER);
+5.0% at Constant Exchange Rate (CER) Driven by Continued
Advancement of Growth & Launch Products (+18.7% at
CER)
- Core Operating Profit Increase of +12.9% at CER; Core
Operating Profit Margin of 30.2%
- Double-Digit Revenue Growth of ENTYVIO® at CER Driven by
Launch of ENTYVIO® Pen in the U.S.
- Geographical Expansion with Approvals of ADZYNMA® in EU and
FRUZAQLA® in Japan
- Late-Stage Pipeline Advances with the Start of Phase 3 Trial
of TAK-861 in Narcolepsy Type 1
- Company will Hold R&D Day for Investors and Media on
December 12 (Eastern) / 13 (Japan)
Takeda (TOKYO:4502/NYSE:TAK) today announced earnings results
for the first half of fiscal year 2024 (six months ended September
30, 2024), with continued momentum in its Growth & Launch
Products driving growth. The company has upgraded its full year
forecasts and Management Guidance to reflect stronger than
anticipated first-half performance (including milder than
anticipated generic erosion of VYVANSE® in the U.S.) and revised
foreign exchange assumptions.
The strong performance of Takeda’s Growth and Launch Product
portfolio, which grew 18.7% at CER and represented 47% of total
revenue, reinforces the company’s confidence in returning to
sustainable revenue and profit growth.
The initiation of TAK-861’s Phase 3 trial in August for
narcolepsy type 1 demonstrates Takeda’s strength in advancing its
promising late-stage pipeline to develop life-transforming
treatments. More details on the company’s R&D strategy and
pipeline updates, including commercial prospects, will be presented
at Takeda’s R&D Day taking place on December 12 (EST) / 13
(JST), 2024.
Takeda chief executive officer, Christophe Weber,
commented: “In the first half of fiscal year 2024, we made
further progress in advancing our pipeline, including the
initiation of our TAK-861 Phase 3 trial for narcolepsy type 1. Our
late-stage programs continue to advance, with several in Phase 3
development this fiscal year, and have the potential to transform
the lives of patients around the world.
“Our commercial execution has positioned us for sustainable
growth despite a dynamic and competitive environment. Bolstered by
the continued strong performance of our Growth & Launch
Products, including a return to double-digit growth of
ENTYVIO®, lifecycle management approvals and successful
launches of new products such as FRUZAQLA® in our oncology
portfolio, our business and long-term outlook remains
strong.”
Takeda chief financial officer, Milano Furuta, commented:
“We are upgrading our FY2024 full year outlook, reflecting stronger
than anticipated first half performance as well as updated foreign
exchange assumptions for the year. Full-year guidance reflects our
intention to increase R&D investment in the second half to
support our late-stage pipeline.
“We remain confident in delivering sustainable growth with our
Growth & Launch Products and promising late-stage pipeline.
Implementation of our multi-year program to improve our efficiency
through organizational agility, procurement savings and data,
digital and technology is progressing as planned. We continue to
drive these initiatives to improve our Core Operating Profit Margin
from FY2025 towards our low-to-mid 30s% target.”
FINANCIAL HIGHLIGHTS for FY2024 H1
Ended September 30, 2024
(Billion yen, except percentages and per
share amounts)
FY2024 H1
FY2023 H1
vs. PRIOR YEAR
(Actual % change)
Revenue
2,384.0
2,101.7
+13.4%
Operating Profit
350.6
119.2
+194.0%
Net Profit
187.3
41.4
+352.8%
EPS (Yen)
119
27
+348.4%
Operating Cash Flow
451.3
291.3
+54.9%
Adjusted Free Cash Flow
(Non-IFRS)
247.5
-71.1
N/A
Core (Non-IFRS)
(Billion yen, except percentages and per
share amounts)
FY2024 H1
FY2023 H1
vs. PRIOR YEAR
(Actual % change)
vs. PRIOR YEAR
(CER % change)
Revenue
2,384.0
2,101.7
+13.4%
+5.0%
Operating Profit
719.9
588.8
+22.3%
+12.9%
Margin
30.2%
28.0%
+2.2pp
―
Net Profit
489.1
407.7
+20.0%
+8.9%
EPS (Yen)
310
261
+18.8%
+7.9%
FY2024 Outlook Updating Full Year Management Guidance,
and Reported and Core Forecasts
Takeda’s FY2024 Management Guidance has been upgraded, primarily
due to milder than anticipated generic erosion of VYVANSE and
strong business momentum. Furthermore, also reflecting expected
foreign exchange rates during the remaining second half of FY2024,
Takeda’s FY2024 reported and Core forecasts have been revised from
the original forecast.
FY2024 Management Guidance Core Change at
CER (Non-IFRS)
FY2024 ORIGINAL MANAGEMENT
GUIDANCE (May 2024)
FY2024 REVISED MANAGEMENT
GUIDANCE (October 2024)
Core Revenue
Flat to slightly declining
Flat to slightly increasing
Core Operating Profit
Approximately 10% decline
Mid-single-digit % decline
Core EPS (Yen)
Mid-10s% decline
Approx 10% decline
FY2024 Reported and Core Forecasts
(Billion yen, except percentages and per share amounts)
FY2024 ORIGINAL
FORECAST
(May 2024)
FY2024
REVISED FORECAST
(October 2024)
Revenue
4,350.0
4,480.0
Core Revenue (Non-IFRS)
4,350.0
4,480.0
Operating Profit
225.0
265.0
Core Operating Profit (Non-IFRS)
1,000.0
1,050.0
Net Profit
58.0
68.0
EPS (Yen)
37
43
Core EPS (Yen) (Non-IFRS)
431
456
Adjusted Free Cash Flow (Non-IFRS)
350.0 - 450.0
400.0-500.0
Annual Dividend per Share (Yen)
196
196
Additional Information About Takeda’s FY2024 H1 Results
For more details about Takeda’s FY2024 H1 results, commercial
progress, pipeline updates and other financial information,
including key assumptions in the FY2024 forecast and management
guidance as well as definitions of non-IFRS measures, please refer
to Takeda’s FY2024 Q2 investor presentation (available at
https://www.takeda.com/investors/financial-results/quarterly-results/)
About Takeda Takeda is focused on creating better health
for people and a brighter future for the world. We aim to discover
and deliver life-transforming treatments in our core therapeutic
and business areas, including gastrointestinal and inflammation,
rare diseases, plasma-derived therapies, oncology, neuroscience and
vaccines. Together with our partners, we aim to improve the patient
experience and advance a new frontier of treatment options through
our dynamic and diverse pipeline. As a leading values-based,
R&D-driven biopharmaceutical company headquartered in Japan, we
are guided by our commitment to patients, our people and the
planet. Our employees in approximately 80 countries and regions are
driven by our purpose and are grounded in the values that have
defined us for more than two centuries. For more information, visit
www.takeda.com.
Important Notice For the purposes of this notice, “press
release” means this document, any oral presentation, any question
and answer session and any written or oral material discussed or
distributed by Takeda Pharmaceutical Company Limited (“Takeda”)
regarding this press release. This press release (including any
oral briefing and any question-and-answer in connection with it) is
not intended to, and does not constitute, represent or form part of
any offer, invitation or solicitation of any offer to purchase,
otherwise acquire, subscribe for, exchange, sell or otherwise
dispose of, any securities or the solicitation of any vote or
approval in any jurisdiction. No shares or other securities are
being offered to the public by means of this press release. No
offering of securities shall be made in the United States except
pursuant to registration under the U.S. Securities Act of 1933, as
amended, or an exemption therefrom. This press release is being
given (together with any further information which may be provided
to the recipient) on the condition that it is for use by the
recipient for information purposes only (and not for the evaluation
of any investment, acquisition, disposal or any other transaction).
Any failure to comply with these restrictions may constitute a
violation of applicable securities laws.
The companies in which Takeda directly and indirectly owns
investments are separate entities. In this press release, “Takeda”
is sometimes used for convenience where references are made to
Takeda and its subsidiaries in general. Likewise, the words “we”,
“us” and “our” are also used to refer to subsidiaries in general or
to those who work for them. These expressions are also used where
no useful purpose is served by identifying the particular company
or companies.
The product names appearing in this document are trademarks or
registered trademarks owned by Takeda, or their respective
owners.
Forward-Looking Statements This press release and any
materials distributed in connection with this press release may
contain forward-looking statements, beliefs or opinions regarding
Takeda’s future business, future position and results of
operations, including estimates, forecasts, targets and plans for
Takeda. Without limitation, forward-looking statements often
include words such as “targets”, “plans”, “believes”, “hopes”,
“continues”, “expects”, “aims”, “intends”, “ensures”, “will”,
“may”, “should”, “would”, “could”, “anticipates”, “estimates”,
“projects”, “forecasts”, “outlook” or similar expressions or the
negative thereof. These forward-looking statements are based on
assumptions about many important factors, including the following,
which could cause actual results to differ materially from those
expressed or implied by the forward-looking statements: the
economic circumstances surrounding Takeda’s global business,
including general economic conditions in Japan and the United
States; competitive pressures and developments; changes to
applicable laws and regulations; challenges inherent in new product
development, including uncertainty of clinical success and
decisions of regulatory authorities and the timing thereof;
uncertainty of commercial success for new and existing products;
manufacturing difficulties or delays; fluctuations in interest and
currency exchange rates; claims or concerns regarding the safety or
efficacy of marketed products or product candidates; the impact of
health crises, like the novel coronavirus pandemic; the success of
our environmental sustainability efforts, in enabling us to reduce
our greenhouse gas emissions or meet our other environmental goals;
the extent to which our efforts to increase efficiency,
productivity or cost-savings, such as the integration of digital
technologies, including artificial intelligence, in our business or
other initiatives to restructure our operations will lead to the
expected benefits; and other factors identified in Takeda’s most
recent Annual Report on Form 20-F and Takeda’s other reports filed
with the U.S. Securities and Exchange Commission, available on
Takeda’s website at:
https://www.takeda.com/investors/sec-filings-and-security-reports/
or at www.sec.gov. Takeda does not undertake to update any of the
forward-looking statements contained in this press release or any
other forward-looking statements it may make, except as required by
law or stock exchange rule. Past performance is not an indicator of
future results and the results or statements of Takeda in this
press release may not be indicative of, and are not an estimate,
forecast, guarantee or projection of Takeda’s future results.
Financial information and Non-IFRS Measures Takeda’s
financial statements are prepared in accordance with International
Financial Reporting Standards (“IFRS”).
This press release and materials distributed in connection with
this press release include certain financial measures not presented
in accordance with IFRS, such as Core Revenue, Core Operating
Profit, Core Net Profit for the year attributable to owners of the
Company, Core EPS, Constant Exchange Rate (“CER”) change, Net Debt,
Adjusted Net Debt, EBITDA, Adjusted EBITDA, Free Cash Flow and
Adjusted Free Cash Flow. Takeda’s management evaluates results and
makes operating and investment decisions using both IFRS and
non-IFRS measures included in this press release. These non-IFRS
measures exclude certain income, cost and cash flow items which are
included in, or are calculated differently from, the most closely
comparable measures presented in accordance with IFRS. Takeda’s
non-IFRS measures are not prepared in accordance with IFRS and such
non-IFRS measures should be considered a supplement to, and not a
substitute for, measures prepared in accordance with IFRS (which we
sometimes refer to as “reported” measures). Investors are
encouraged to review the definitions and reconciliations of
non-IFRS measures to their most directly comparable IFRS measures,
which are in the Financial Appendix appearing at the end of our
FY2024 Q2 investor presentation (available at
www.takeda.com/investors). Beginning in the quarter ended June 30,
2024, Takeda (i) changed its methodology for CER adjustments to
results of subsidiaries in hyperinflation countries to present
those results in a manner consistent with IAS 29, Financial
Reporting in Hyperinflation Economies, (ii) re-named Free Cash Flow
as previously calculated as “Adjusted Free Cash Flow” (with “Free
Cash Flow” to be reported as Operating Cash Flow less Property,
Plant and Equipment), and (iii) re-named Net Debt as previously
calculated as “Adjusted Net Debt” (with “Net Debt” to be reported
as the book value of bonds and loans less cash and cash
equivalents).
Medical information This press release contains
information about products that may not be available in all
countries, or may be available under different trademarks, for
different indications, in different dosages, or in different
strengths. Nothing contained herein should be considered a
solicitation, promotion or advertisement for any prescription drugs
including the ones under development.
Please refer to slide 5 of Takeda’s FY2024 Q2 investor
presentation (available at
https://www.takeda.com/investors/financial-results/quarterly-results/)
for the definition of Growth & Launch Products.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030235134/en/
Investor Relations Christopher O’Reilly
Christopher.oreilly@takeda.com +81 (0) 90-6481-3412
Media Relations Brendan Jennings
Brendan.jennings@takeda.com +81 (0) 80-2705-8259 (Outside Japan
business hours) Media_relations@takeda.com
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