OSAKA, Japan - Thursday, 30. January 2025 AETOSWire
Revenue Growth of +9.8% at Actual Exchange Rates (AER); +4.5% at
Constant Exchange Rate (CER) Driven by Strong Momentum of Growth &
Launch Products (+14.6% at CER)
Core Operating Profit Increase of +10.1% at CER; Core OP Margin Climbs to 28.5%
Reported Operating Profit +86.3% at AER Reflects Lower Impairment of Intangible Assets Compared to FY2023
Raises Adjusted Free Cash Flow Forecast Range by JPY 150.0 billion to JPY550.0 - JPY650.0 billion
Announces Share Buyback of up to JPY 100.0 billion
(BUSINESS
WIRE) -- Takeda (TOKYO:4502/NYSE:TAK) today announced earnings results
for the third quarter of fiscal year 2024 (nine months ended December
31, 2024) showing continued advancement of its Growth & Launch
Products, which delivered double-digit growth of 14.6% at CER. The
company has upgraded its full year outlook for growth, reflecting strong
year-to-date product performance and OPEX efficiencies, as well as
revised foreign exchange assumptions.
Takeda continues to advance
multiple late-stage programs and is on track for three Phase 3 data
readouts within the calendar year 2025. The company expects three
regulatory filings in FY2025-FY2026 and five additional regulatory
filings in FY2027-FY2029. Six of these late-stage programs are estimated
to have the potential to generate peak revenues ranging from USD 10
billion to 20 billion in total and contribute to long-term growth.
Takeda
also announced today its decision to buy back shares up to JPY 100.0
billion, underscoring confidence in its strong business momentum and
commitment to shareholder returns. For details, see release: Takeda
Announces Acquisition of Own Shares
Takeda chief financial officer, Milano Furuta, commented:
“We
are raising our Management Guidance and reported & Core forecasts
for the full year, pivoting to a growth outlook for revenue and
operating profit on the strength of product momentum and OPEX
efficiencies from our efficiency program. We are confident that we will
grow our Core Operating Profit margin this fiscal year.
“As
highlighted at our R&D Day in December 2024, we are on track to
three Phase 3 data readouts within calendar year 2025, strengthening
confidence in our long-term growth outlook.
“The announcement of
our new share buyback program, approved by Takeda’s Board of Directors,
demonstrates our commitment to shareholder returns.”
FINANCIAL HIGHLIGHTS for FY2024 Q3 YTD Ended December 31, 2024
(Billion yen, except percentages and per share amounts)
FY2024 Q3 YTD
FY2023 Q3 YTD
vs. PRIOR YEAR
(Actual % change)
Revenue
3,528.2
3,212.9
+9.8%
Operating Profit
417.5
224.1
+86.3%
Net Profit
211.1
147.1
+43.5%
EPS (Yen)
134
94
+42.1%
Operating Cash Flow
835.0
437.8
+90.8%
Adjusted Free Cash Flow (Non-IFRS)
568.3
36.3
+1,466%
Core (Non-IFRS)
(Billion yen, except percentages and per share amounts)
FY2024 Q3 YTD
FY2023 Q3 YTD
vs. PRIOR YEAR
(Actual % change)
vs. PRIOR YEAR
(CER % change)
Revenue
3,528.2
3,212.9
+9.8%
+4.5%
Operating Profit
1,006.3
865.6
+16.3%
+10.1%
Margin
28.5%
26.9%
+1.6pp
―
Net Profit
698.9
643.6
+8.6%
+1.9%
EPS (Yen)
443
412
+7.5%
+0.9%
FY2024 Outlook
Updating Full Year Management Guidance and Reported and Core Forecasts
Takeda
has upgraded its FY2024 Management Guidance, primarily driven by
product momentum and OPEX savings. In addition, and also reflecting
revised foreign exchange assumptions for the year, Takeda has raised its
FY2024 reported and Core forecasts from the previous forecast. For more
details, see release: Notice of the Revised Forecast of Consolidated
Financials for FY2024 (IFRS)
FY2024 Management Guidance Core Change at CER (Non-IFRS)
FY2024 PREVIOUS
MANAGEMENT GUIDANCE
(October 2024)
FY2024 REVISED
MANAGEMENT GUIDANCE
(January 2025)
Core Revenue
Flat to slightly increasing
Low-single-digit % increase
Core Operating Profit
Mid-single-digit % decline
Low-single-digit % increase
Core EPS (Yen)
Approx 10% decline
Flat to slightly declining
FY2024 Reported and Core Forecasts
(Billion yen, except percentages and per share amounts)
FY2024
PREVIOUS FORECAST
(October 2024)
FY2024
REVISED FORECAST
(January 2025)
Revenue
4,480.0
4,590.0
Core Revenue (Non-IFRS)
4,480.0
4,590.0
Operating Profit
265.0
344.0
Core Operating Profit (Non-IFRS)
1,050.0
1,150.0
Net Profit
68.0
118.0
EPS (Yen)
43
75
Core EPS (Yen) (Non-IFRS)
456
507
Adjusted Free Cash Flow (Non-IFRS)
400.0-500.0
550.0-650.0
Annual Dividend per Share (Yen)
196
196
Positive Momentum in High-Value, Late-Stage Pipeline
The
company is building strong momentum with its high-value, late-stage
programs. The transformative value these programs can deliver to
patients, as well as the significant revenue potential through 2030 and
beyond, were presented at the R&D Day event held in December 2024.
Among
the multiple late-stage programs presented, the company expects three
Phase 3 data readouts in the calendar year 2025 with filings anticipated
in FY2025-FY2026 for the following programs and indications:
oveporexton (TAK-861) for the treatment of narcolepsy type 1,
zasocitinib for the treatment of psoriasis, and
rusfertide for the treatment of polycythemia vera, a rare chronic blood disorder
Moreover, five additional indication filings for late-stage programs are on pace for FY2027-FY2029.
zasocitinib for the treatment of psoriatic arthritis,
mezagitamab for treatments of immune thrombocytopenia (ITP), a rare
immune-mediated bleeding disorder, and immunoglobulin A nephropathy
(IgAN), a chronic progressive autoimmune mediated kidney disease,
fazirsiran for the treatment of alpha-1 antitrypsin deficiency-associated liver disease, and
elritercept for the treatment of anemia associated with myelodysplastic syndrome
Beyond
its high-value, late-stage pipeline, Takeda will continue advancing its
early-stage pipeline and focusing on strategic business development
opportunities, to deliver treatments that have the potential to change
patients’ lives.
Additional Information About Takeda’s FY2024 Q3 YTD Results
For
more details about Takeda’s FY2024 Q3 YTD 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 Q3
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 Q3 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).
Peak Sales and PTRS Estimates
References
in this press release to peak revenue potential ranges are estimates
that have not been adjusted for probability of technical and regulatory
success (PTRS) and should not be considered a forecast or target. These
peak revenue potential ranges represent Takeda’s assessments of various
possible future commercial scenarios that may or may not occur.
References
in this press release to PTRS are to internal estimates of Takeda
regarding the likelihood of obtaining regulatory approval for a
particular product in a particular indication. These estimates reflect
the subjective judgment of responsible Takeda personnel and have been
approved by Takeda’s Portfolio Review Committee for use in internal
planning.
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 Q3
investor presentation (available at
https://www.takeda.com/investors/financial-results/quarterly-results/)
for the definition of Growth & Launch Products.
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Contacts
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
