Takeda Reports Q1 FY2025 Results, Late-Stage Pipeline Progression

Takeda Pharmaceutical reported a 3.7% decline in revenue at constant exchange rates and an 8.4% decline at actual exchange rates in Q1 FY2025 due to VYVANSE generic erosion. Core operating profit declined 11.9% at CER, while reported operating profit increased 11.0% at actual exchange rates. The company announced positive results from two pivotal Phase 3 studies of oveporexton in narcolepsy type 1 and maintained its full-year outlook.

Takeda Pharmaceutical reported its first-quarter FY2025 results, highlighting the impact of VYVANSE generic erosion on revenue and core operating profit, while also showcasing significant progress in its R&D pipeline. The company reported a 3.7% decline in revenue at constant exchange rates (CER) and an 8.4% decline at actual exchange rates (AER) due to the erosion of VYVANSE sales [1]. Core operating profit declined by 11.9% at CER, primarily reflecting this generic erosion, while reported operating profit increased by 11.0% at AER, driven by lower year-over-year (YoY) impairment and restructuring expenses.

Despite these financial challenges, Takeda achieved several notable milestones in its R&D pipeline. Both Phase 3 studies of oveporexton in narcolepsy type 1 successfully met all primary and secondary endpoints, demonstrating statistically significant improvements across doses. This reinforces the potential of oveporexton to transform the standard of care in narcolepsy type 1. Additionally, Takeda received U.S. FDA approval for GAMMAGARD® LIQUID ERC and European Commission (EC) approval for ADCETRIS® in new indications, and presented promising clinical data for rusfertide at the 61st American Society of Clinical Oncology (ASCO) Annual Meeting Plenary Session [1].

The company's chief financial officer, Milano Furuta, commented on the results, stating that the impact of VYVANSE generic erosion on Takeda’s FY2025 Q1 results was significant but consistent with expectations. He also noted that the company's late-stage pipeline continues to advance, with the announcement of positive results from the pivotal Phase 3 studies for oveporexton in narcolepsy type 1. These results represent a significant scientific milestone and underscore the potential for Takeda’s late-stage pipeline to drive future growth [1].

Takeda maintained its full-year outlook despite the quarterly challenges, indicating that the company expects the impacts of VYVANSE generic erosion to moderate in future quarters. The company's financial highlights for Q1 FY2025 showed a 30.4% increase in net profit and a 30.8% increase in earnings per share (EPS) at CER, driven by lower restructuring expenses and improved operating cash flow [1].

References:
[1] https://www.takeda.com/newsroom/newsreleases/2025/takeda-fy2025-q1-press-release-pipeline-progress/