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Main » 2015 » November » 2 » Takeda Reports Results for the First Half of FY2015 Confirms Management Guidance for the Full Year
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Takeda Reports Results for the First Half of FY2015 Confirms Management Guidance for the Full Year

Revenue growth driven by gastroenterology, oncology and emerging markets

OSAKA, Japan - Friday, October 30th 2015 [ME NewsWire]

(BUSINESS WIRE)-- Takeda Pharmaceutical Company Limited (TOKYO:4502):

First half results aligned with management guidance

    Underlying revenue +3.8% year-to-year (reported revenue growing +6.2% to 904 billion yen)
    Underlying Core Earnings +3.7% year-to-year (operating profit -5.4% to 110.4 billion yen)

Continued performance of Takeda's strategic growth drivers in the first half

    Gastroenterology underlying revenue +28.7%, oncology up +1.6% year-to-year
    Emerging markets underlying revenue +7.1% year-to-year, with particularly strong contributions from Russia and China
    Consolidated underlying revenue of gastroenterology, oncology and emerging markets – Takeda's growth drivers – is +10.0% year-to-year

First half growth supported by innovative new products

    Entyvio success continues to support more than $2 billion peak sales target
    Brintellix and Adcetris show steady growth
    Azilva and Lotriga continue to grow strongly in Japan

Regional performance

    Year-to-year underlying revenue growth in U.S. +12.0% (driven by Entyvio and Brintellix), Europe and Canada +1.5% (Entyvio and Adcetris), and emerging markets +7.1% (Russia and China)
    Strong growth of new products in Japan. Underlying revenue in Japan decreased by 3.4% year-to-year as a result of increasing generic penetration

Efficiency gains continue

    Project Summit achieved 11 billion yen of cost savings in the first half of FY2015
    On track to deliver more than 20 billion yen savings this fiscal year

Affirming management guidance for profitable growth in FY2015

    Low single-digit underlying revenue growth in FY2015, with underlying core earnings growth higher than underlying revenue growth, and underlying core EPS growth higher than underlying core earnings growth

Christophe Weber, President and Chief Executive Officer of Takeda, commented:

"In the first half of FY2015, Takeda continued its turnaround with underlying revenue growth of 3.8%, led by our growth drivers of gastroenterology, oncology and emerging markets. Operating profit was down in the first half of the year, mainly due to an increase in expenses for several recent launches and in R&D, as planned, but underlying core earnings increased by 3.7%, getting closer to underlying revenue growth. On the basis of our first-half results, we confirm our full-year management guidance."
 

Key figures for H1 of FY2015
          
                                    

FY 2014
          

FY 2015
          

Growth
                        

billion yen
          

H1
          

H1
                      

Underlying2
                        

Revenue
          

851.4
          

904.0
          

+6.2%
          

+3.8%
                        

Operating Profit
          

116.7
          

110.4
          

-5.4%
          


                        

Core Earnings1
          

169.9
          

177.5
          

+4.5%
          

+3.7%
                        

Net Profit3
          

61.4
          

54.4
          

-11.5%
          


                        

EPS
          

78 yen
          

69 yen
          

-11.2%
          


                        

Core EPS
          

134 yen
          

135 yen
          

+1.2%
          

+7.9%

1 Core Earnings is calculated from operating profit by excluding the impact of exceptional items, such as purchase accounting, amortization and impairment loss of intangible assets, restructuring costs and litigation costs. 2 Underlying performance aims at understanding the real performance of the business. Underlying Revenue and Underlying Core Earnings excludes the same as above and adjusted for acquisitions/divestments and foreign exchange. 3 Attributable to the owners of the company Underlying revenue growth in the first half was +3.8%, Underlying Core Earnings was +3.7% and Underlying Core EPS was +7.9%, with no changes in our management guidance for FY2015. Reported revenue grew +6.2% to 904.0 billion yen. An increase in expenses for new launch products, as well as a decrease in other income related to sale of real estate in 2014, resulted in a year-to-year decline in Operating Profit, Net Profit and EPS, by 6.2 billion yen, 7.1 billion yen and 9 yen, respectively. These measures have improved in the second quarter compared to the first quarter.

Underlying revenue growth was mainly driven by Takeda's growth drivers, which are gastroenterology, oncology and emerging markets. Gastroenterology grew by +28.7% year-to-year, driven by Entyvio. Oncology revenue, including Velcade and Adcetris, increased by +1.6%. Emerging markets revenue grew by +7.1%, led by Value Brands (branded generics and OTC), with strong growth in Russia and China. Performance in the U.S. (+12.0% underlying revenue growth) and Europe and Canada (+1.5%) also contributed to revenue growth. In Japan, products such as Azilva and Lotriga contributed to revenue growth, but as a result of increasing generic competition, total revenue declined -3.4%.

Project Summit – a company-wide strategic initiative to increase efficiency – continued to produce results, with 11 billion yen savings in the first half. Execution of Summit initiatives in recent months include business restructuring programs, further optimization of production capacity utilization, and continued operational efficiency. A new global procurement organization also contributed by leveraging effective external spending. Efficiency initiatives as part of Project Summit remain on track, and Takeda is committed to continued operational efficiency.

Entyvio is expected to be a key global contributor to Takeda's sales growth over the next few years, and Azilva, Lotriga, and Takecab are the products that are expected to enable Takeda to maintain a leading position in Japan. As part of the ongoing efforts of the R&D organization, ixazomib for relapsed/refractory multiple myeloma was granted accelerated assessment status in Europe in July, and Priority Review status in the U.S. in September 2015. In Japan, Takeda submitted a New Drug Application for the fixed-dose combination tablet of Nesina and metformin, and received approval for Leuplin 24 week depot for the treatment of prostate cancer and premenopausal breast cancer and for Copaxone for the treatment of multiple sclerosis in September 2015.

Takeda confirmed its management guidance for FY2015, leading to long-term sales and profit growth.
 
      

Management Guidance for FY2015
          
                                    

Underlying Growth
                        

Underlying Revenue
          

Low single digit
                        

Underlying Core Earnings
          

Higher than underlying revenue growth
                        

Underlying Core EPS
          

Higher than underlying core earnings growth
 

For more details on Takeda’s FY2015 H1 results and other financial information please visit http://www.takeda.com/investor-information/results/

About Takeda Pharmaceutical Company Limited

Located in Osaka, Japan, Takeda (TOKYO:4502) is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global leaders of the industry, Takeda is committed to strive towards better health for people worldwide through leading innovation in medicine. Additional information about Takeda is available through its corporate website, www.takeda.com.

Contacts

Takeda Pharmaceutical Company Limited

Investor Relations

Noriko Higuchi, +81-(0)3-3278-2306

noriko.higuchi@takeda.com

 

Media Relations

Japanese media

Tsuyoshi Tada, +81 (0)3-3278-2417

tsuyoshi.tada@takeda.com

 

English media and media outside Japan

Tobias Cottmann, +41-79-217-7252

tobias.cottmann@takeda.com

 

 

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