Takeda Pharmaceutical Co - ADR

Core Revenue Growth: Takeda reported a core revenue growth of 2.8% at constant exchange rates (CER) for FY '24, driven by its Growth and Launch Product portfolio, which grew by 14.7% and now accounts for 48% of total revenue. Despite the significant impact from GENERICS like VYVANSE, the company's strategic focus on growth products counterbalanced potential revenue decline.

Operating Profit Performance: Core operating profit reached JPY 1.2 trillion, marking a 4.9% increase at CER. The operating profit margin was 25.4%, exceeding initial expectations by over 2 percentage points. The margin growth was supported by strict OpEx control due to ongoing efficiency programs, which also recorded approximately JPY 200 billion in annualized savings.

Challenges with VYVANSE: VYVANSE’s loss of exclusivity adversely affected revenue, with an expected 30% decline for the full year. The company highlighted the competitive landscape with 15 generics now available, posing a continuous challenge for VYVANSE's market share in the U.S., albeit with smoother erosion expected compared to the previous fiscal year.