Takeda Pharmaceutical Reports Q1 FY2025 Results Amidst Generic Erosion Challenges, Core Profit Aligns with Expectations

Takeda Pharmaceutical Co Ltd reported Q1 FY2025 results, with revenue decreasing 8.4% due to generic erosion of VYVANSE. However, core operating profit aligned with expectations, and the company achieved key R&D milestones, including successful Phase 3 studies for oveporexton and regulatory approvals for GAMMAGARD® LIQUID ERC and ADCETRIS® in new indications. Net profit increased by 30.4% compared to the previous year, and adjusted free cash flow saw a remarkable increase of 703.6% year-over-year.

Takeda Pharmaceutical Co. Ltd. (TSE:4502/NYSE:TAK) released its first-quarter fiscal year 2025 (FY2025 Q1) results on July 30, 2025, reporting a significant revenue decline due to generic erosion of VYVANSE®. However, core operating profit aligned with expectations, and the company achieved key research and development (R&D) milestones, including successful Phase 3 studies for oveporexton and regulatory approvals for GAMMAGARD® LIQUID ERC and ADCETRIS® in new indications. Net profit increased by 30.4% compared to the previous year, and adjusted free cash flow saw a remarkable increase of 703.6% year-over-year [1].

The company's revenue for the quarter declined by 8.4% at actual exchange rates (AER) and 3.7% at constant exchange rates (CER), primarily due to the generic erosion of VYVANSE®. Despite this, core operating profit decreased by 11.9% at CER and increased by 11.0% at AER, reflecting lower year-over-year impairment and restructuring expenses. Takeda's chief financial officer, Milano Furuta, commented that the impact of VYVANSE® generic erosion was significant but consistent with expectations, and there was no change to the company's full-year outlook announced in May [1].

Takeda's R&D pipeline continued to advance, with positive results from two pivotal Phase 3 studies of oveporexton in narcolepsy type 1. Both studies met all primary and secondary endpoints, demonstrating statistically significant improvements across doses. These results reinforce 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].

Financial highlights for FY2025 Q1 included:
- Revenue: 1,106.7 billion yen (-8.4% vs. prior year)
- Operating Profit: 184.6 billion yen (+11.0% vs. prior year)
- Net Profit: 124.2 billion yen (+30.4% vs. prior year)
- EPS (Yen): 79 (+30.8% vs. prior year)
- Operating Cash Flow: 215.4 billion yen (+26.5% vs. prior year)
- Adjusted Free Cash Flow (Non-IFRS): 190.1 billion yen (+703.6% vs. prior year) [1]

Takeda's FY2025 outlook remains unchanged from May 2025, with core revenue (Non-IFRS) forecasted at 4,530.0 billion yen, broadly flat core operating profit (Non-IFRS) at 1,140.0 billion yen, and core EPS (Yen) (Non-IFRS) at 485 yen [1].

For more details about Takeda’s FY2025 Q1 results, commercial progress, pipeline updates, and other financial information, including key assumptions in the FY2025 forecast and management guidance, please refer to Takeda’s FY2025 Q1 investor presentation (available at [https://www.takeda.com/investors/financial-results/quarterly-results/](https://www.takeda.com/investors/financial-results/quarterly-results/)).

References:
[1] Takeda Pharmaceutical Co. Ltd. (2025). Takeda Announces First-Quarter FY2025 Results With Significant Late-Stage Pipeline Progression. Retrieved from https://www.takeda.com/newsroom/newsreleases/2025/takeda-fy2025-q1-press-release-pipeline-progress/