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Takeda Pharma expects surprise profits to triple this year's revenue

Image:-The logo of Takeda Pharmaceutical Co

Takeda Pharmaceutical Co has booked a surprise operating profit and predicts that revenues will triple this year since heavy acquisition cost of the $59 billion Shire take-over of last year will decrease.

Japan's largest drug producer said he expects to make an operating profit of 355 billion yen (3.3 billion dollars) for the year to March.

This compares with 100 billion yen for the previous year, which was a result that ruled out a 10 billion yen profit and 12.7 billion yen loss prediction in a Refinitive poll of 13 analysts. Sales jumped 57 percent to 3.3 trillion yen and the sales of its ulcerative colitis medication Entyvio increased 29 percent.

Due to the COVID-19 crisis, Takeda stopped new drug trials except its research-based plasma-derived disease therapy, initially named TAK-888. It formed an alliance of 10 global plasma companies in order to develop a shared therapy using blood-borne immune cells from recovered patients with coronavirus.

"To create an alliance with our competitor, we realised that we could go much faster and create far more capacity and volume," CEO Christophe Weber said at a call after the result.

According to Julie Kim, President of the plasma division, clinical trials for a Group product now called CoVIg-19 could begin in July and will take place in the United States, Europe and Japan.

The acquisition of Shire, finished in January 2019, extended Takeda's pipeline, and diversified its global sales. But the drugmaker was also saddled with a large pile of debt.

In order to curb debt, Takeda promised to dispose of non-core assets worth $ 10 billion. It has invested $7.7 billion so far, most recently selling over-the-counter and prescription products to the Orifarm Group in Denmark for about $670 million.

Takeda aims to sell its Japanese OTC business for approximately $400 billion ($3.72 billion). Weber said the report was speculation but admitted "we are not an OTC company."

Takeda focuses on five key areas of business: oncology, gastroenterology, neuroscience, rare diseases, and plasma therapy. The company told investors in November that it expected 14 new products through fiscal year 2024 to generate combined annual peak sales of around $10 billion.

In anticipation of the findings, Takeda 's shares increased 1.2% in Tokyo versus 0.5% for the wider market.

($1 = 107.1200 yen)

Article Edited by | John Heine |

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