Takeda Delivers Strong Third-Quarter FY2024 Results; Raises Full Year Outlook, Forecasting Revenue and Core Operating Profit Margin Growth

   -- 
 Revenue Growth of +9.8% at Actual Exchange Rates $(AER)$; +4.5% at 
      Constant Exchange Rate $(CER.UK)$ 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 
 
OSAKA, Japan--(BUSINESS WIRE)--January 30, 2025-- 

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) 
------------------------------------------------------------------------------ 
                                                              vs. PRIOR YEAR 
                              FY2024 Q3 YTD  FY2023 Q3 YTD   (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) 
------------------------------------------------------------------------------ 
                                              vs. PRIOR YEAR    vs. PRIOR YEAR 
                                                 (Actual %          (CER % 
               FY2024 Q3 YTD  FY2023 Q3 YTD       change)          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              FY2024 REVISED 
                          MANAGEMENT GUIDANCE          MANAGEMENT GUIDANCE 
                             (October 2024)               (January 2025) 
---------------------  --------------------------  --------------------------- 
Core Revenue                Flat to slightly       Low-single-digit % increase 
                               increasing 
---------------------  --------------------------  --------------------------- 
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               FY2024 
                                      PREVIOUS FORECAST   REVISED FORECAST 
                                       (October 2024)      (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 
 

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January 30, 2025 01:35 ET (06:35 GMT)