Takeda Pharma to restructure after profit slump

Japan’s Takeda Pharmaceutical announced a restructuring yesterday after annual profit slid by more than half following the loss of patent protection of major sellers.

Japan’s biggest drugmaker said it will incur restructuring costs of ¥140 billion (RM4.2 billion) this fiscal year as part of a plan to optimise its workforce, cut costs and strengthen technology.

A spokesman said there was not a specific headcount number that may be reduced in the plan, which is to be phased in “according to unique business needs and country requirements”.

Operating profit was ¥214.1 billion for the 12 months through March, versus ¥490.5 billion last year and a consensus estimate of ¥265.3 billion in an LSEG survey of 13 analysts.

Takeda forecast operating profit will reach ¥225 billion in the current fiscal year.

The drugmaker had flagged fiscal 2023 as a rebuilding phase as it lost exclusivity on blood pressure drug Azilva in Japan and hyperactivity treatment Vyvanse in the United States.

But the company hit roadblocks with clinical trial failures for treatments of lung cancer and Crohn’s disease, leading to hefty impairment losses in the second quarter.

In a statement, chief executive Christophe Weber listed three new approvals by the US Food and Drug Association as highlights in an “otherwise challenging year”.

In February, the company reported positive Phase II results on its narcolepsy treatment TAK-861.

And still in the pipeline is an experimental psoriasis drug it purchased from US-based Nimbus Therapeutics in late 2022 for as much as US$6 billion.

Takeda also has high hopes for its dengue fever vaccine Qdenga, with recent talks to start a clinical trial and production in India.

The company’s shares are about flat so far this year, compared to a 14% advance in the benchmark Nikkei gauge. – Reuters