Takeda Reports $22 Billion Revenue in First Three Quarters of FY2023 Amid Pipeline Rationalization and Leadership Transition

Recently, Takeda Pharmaceutical Company Limited disclosed its financial report for the third quarter of the fiscal year 2023 (ended December 31, 2023), showing strong growth momentum in the third quarter and the approval and market launch of several new products.

According to its report, the core operating profit for the third quarter of the fiscal year 2023 was 865.6 billion yen (approximately 5.9 billion U.S. dollars), a decrease of 9.3% compared with the same period last year. Takeda's net profit for the third quarter was 105.7 billion yen, down 11% from 712.2 million U.S. dollars in the same period last year.

Image Source: Takeda Pharmaceutical Company Limited Official Website

In the first three quarters of fiscal 2023, Takeda's global revenue reached 3.21 trillion yen (approximately 22 billion USD), which remained flat compared to the previous year at constant exchange rates.

Still hopeful to achieve the full-year performance guidance

Takeda stated that the decline in operating profit for the quarter was due to competition from generic drugs, reduced revenue from COVID-19 vaccines, and increased investments in research and technology.

Due to patent expiration, sales of its drug Vyvanse fell by 12.1% to 312.9 billion yen ($2.14 billion).

Takeda CFO Costa Saroukos said in a statement that during the third quarter of fiscal year 2023, Takeda made further progress in its vision of discovering and delivering life-transforming treatments, gaining two new U.S. FDA approvals and expanding the coverage of its existing portfolio, with several lifecycle management approvals for marketed products.

On November 8, 2023, Fruzaqla (fruquintinib), co-developed by HUTCHMED and Takeda, was approved by the FDA for the treatment of adult patients with metastatic colorectal cancer who have previously received fluoropyrimidine-based, oxaliplatin-based, and irinotecan-based chemotherapy, anti-vascular endothelial growth factor therapy, and anti-epidermal growth factor receptor (EGFR) therapy (if RAS wild-type and medically applicable).

On November 9, 2023, the FDA approved Takeda's Adzynma for prophylactic or on-demand enzyme replacement therapy (ERT) in adult and pediatric patients with congenital thrombotic thrombocytopenic purpura (cTTP).

At the same time, Takeda Pharmaceutical Company Limited remains committed to accelerating its business transactions. On January 31, Takeda announced it would pay Protagonist Therapeutics an upfront payment of $300 million to establish a global licensing and collaboration agreement for the development and commercialization of rusfertide, an injectable hepcidin mimetic peptide currently under investigation.

The drug is currently in a Phase III program for the treatment of polycythemia vera (PV), a blood disorder. In addition to the $300 million, Protagonist will also be eligible for development and milestone payments, royalties, and commercial milestones on sales outside the United States.

Takeda had projected revenue of 3.9 trillion yen (approximately $26.6 billion) for the fiscal year 2023. Saroukos stated that Takeda is on track to achieve its full-year management guidance targets.

Cut Pipeline, CEO Resigns

On the same day of disclosing the financial report, Takeda Pharmaceutical Company Limited also announced a change in leadership.

On February 1, Takeda Pharmaceutical Company Limited announced that its Chief Financial Officer, Costa Saroukos, had left the company, and it would cut a series of pipelines.

Takeda stated that Saroukos will step down from the position of Chief Financial Officer on April 1, 2024, and will continue to serve as a company director until June 28, 2024. Milano Furuta, President of Takeda Pharmaceutical Company Limited's Japan pharmaceuticals business unit, will succeed Saroukos as Chief Financial Officer.

Takeda CEO Christophe Weber commented that Costa played a key role in completing the $62 billion acquisition of Shire in 2019.

R&D President Andy Plump mentioned during the R&D pipeline update that Takeda will focus on the development of universal cell therapies in the field of cell therapy. The company has cut three CAR-T cell therapy projects in Phase I clinical trials, namely TAK-102, TAK-103, and TAK-940. TAK-102 and TAK-103 are being developed for solid tumors, while TAK-940 is designed for CD19-positive hematological cancers.

And last year, when disclosing the semi-annual report, Takeda announced the termination of four pipelines: Exkivity, TAK-920/DNL-919, TAK-611, and TAK-105.

Summary

The debut of a new drug is never an easy feat. Facing pressures such as the difficulties in new drug development and declining sales performance, even pharmaceutical giants have been forced to make decisions to adjust their pipelines.

Source: Takeda Official Website

Editor: Pea Shooter

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