What does Takeda Pharmaceutical do and what are its main business segments?

What were the key takeaways from Takeda Pharmaceutical’s earnings call?

What factors drove the changes in Takeda Pharmaceutical's revenue and profit?

Did Takeda Pharmaceutical beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Takeda Pharmaceutical year over year?

What were the key takeaways from Takeda Pharmaceutical's earnings call?

What guidance did Takeda Pharmaceutical's management provide for the next earnings period?

What is Takeda Pharmaceutical's gross profit margin?

- **VYVANSE Impact Waning**: FY25 H1 LOE peak, FY26 growth acceleration with 3 new launches.
- **ENTYVIO Growth Revised**: FY25 growth 6% (vs. 9%) due to competition, but Pen QoQ +20% in U.S.
- **FX Headwinds**: Euro volatility reduces FY25 core OP by ~JPY 10 billion.
- **Innovent Deal Potential**: 3 assets targeting $40+ billion lung/CRC market; Phase III data expected Q4 FY25.
- **R&D Efficiency**: 90%+ R&D programs enabled by AI by FY26; JPY 27.4 billion H1 restructuring savings.

**【CEO Summary Section】**
- FY25 H1 revenue: JPY 2.2 trillion (-6.9% YoY, -3.9% at CER) due to VYVANSE LOE impact (JPY 100 billion loss). Core OP: JPY 639.2 billion (-11.2% YoY, -8.8% at CER). ENTYVIO launch products grew 5.3% at CER, with ENTYVIO Pen QoQ +20% in U.S. FY26 outlook: VYVANSE LOE impact waning, 3 new launches (rusfertide, oveporexton, zasocitinib), and Innovent Biologics partnership to drive growth.

**【CFO Financial Commentary】**
- FY25 H1: Core EPS JPY 279 (-40% YoY), reported EPS JPY 72 (impacted by JPY 58.2 billion cell therapy impairment). FX headwinds: Euro strength vs. BRL (QDENGA) and JPY appreciation. FY25 guidance: Core OP and EPS now expected to decline low single digits (vs. prior flat guidance). FY25 AFG: JPY 525.4 billion free cash flow, JPY 200 dividend per share.

**【R&D & Pipeline Updates】**
- **Oveporexton**: Phase III data shows statistically significant improvement across 14 endpoints for NT1. U.S. filing planned for FY25. Next-gen orexin agonist (TAK-360) in Phase II for NT2/idiopathic hypersomnia.
- **Mezagitamab**: 96-week IgA nephropathy data shows stable renal function 18 months post-treatment. Phase III VERIFY study enrolling well.
- **Innovent Biologics Deal**: 3 assets acquired:
  - IBI363 (PD-1/IL-2 alpha bias bispecific) for NSCLC/CRC
  - IBI343 (Claudin 18.2 ADC) for gastric/pancreatic cancer
  - Option for IBI3001 (EGFR/B7H3 ADC)
- **Nabla Bio Partnership**: AI-driven drug discovery to accelerate pipeline (e.g., 90%+ of R&D programs enabled by in silico tech by FY26).

**【Q&A Highlights】**
- **Innovent Deal Costs**: 60-40 cost split for IBI363, with Takeda leading global dev/commercialization. R&D spending offset by efficiency programs (e.g., JPY 27.4 billion H1 restructuring savings).
- **FX Mitigation**: Long-term manufacturing footprint rebalancing; FY25 euro volatility impact estimated at JPY 10 billion.
- **ENTYVIO Pen Penetration**: U.S. Pen share 9%, targeting acceleration via PBM contract expansion (2/3 PBMs signed). FY25 ENTYVIO growth revised to 6% (vs. prior 9%) due to competition and Medicare Part D redesign.
- **Innovent Data Reliability**: Global Phase II IBI363 data (U.S./Australia) expected Q4 FY25; China data correlation validated via Takeda radiologist review.
- **Dividend Sustainability**: Progressive policy based on core EPS, free cash flow, and debt reduction. FY26 dividend proposal to be announced in May FY26.


Takeda Pharmaceutical Company Limited (TAK) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TAK

TAK fundamentals

You can ask Aime