Takeda Pharmaceutical Company Limited reported first‑half fiscal 2025 results with revenue of 2,219.5 billion yen, a 6.9 % decline from 2,389.4 billion yen in the same period of FY2024. Core operating profit fell 11.2 % to 253.6 billion yen from 719.9 billion yen, while net profit was 112.4 billion yen, compared with 112.5 billion yen in FY2024. Core earnings per share were 72 yen, and operating cash flow rose to 593.7 billion yen, with adjusted free cash flow of 525.4 billion yen.
The decline in revenue and operating profit was driven largely by generic erosion of VYVANSE and a weaker neuroscience portfolio. Oncology and gastroenterology segments maintained steady performance, but neuroscience revenue dropped 12 % year‑over‑year. Growth & Launch Products grew 5 % at constant exchange rate, indicating moderate momentum in new product launches.
Takeda revised its full‑year FY2025 outlook downward: core revenue guidance was cut to 4.50 trillion yen from 4.53 trillion yen, core operating profit guidance was lowered to 1.13 trillion yen from 1.14 trillion yen, and core EPS guidance was reduced to 479 yen from 485 yen. Management cited impairment charges related to strategic pipeline decisions, particularly the gamma‑delta T‑cell therapy platform, and foreign‑exchange impacts as the primary reasons for the modest revisions.
Strategically, Takeda highlighted continued moderate growth from its Growth & Launch Products portfolio, with new launches expected to accelerate in the second half of FY2025. Regulatory filings for rusfertide and oveporexton are anticipated in the second half, and Phase 3 results for zasocitinib are expected. The company reaffirmed its partnership with Innovent Biologics, which includes a $1.2 billion upfront payment and potential milestones up to $11.4 billion for rights to IBI363 and IBI343 outside Greater China, underscoring a focus on high‑value oncology therapies.
Takeda’s financial health remains strong, with a gross margin of 64.8 % and a net margin of 3.1 %. The company’s P/E ratio of 46.1 reflects a premium valuation relative to industry peers. The VYVANSE generic erosion is expected to taper off in 2025, and the company’s pipeline progress, particularly in narcolepsy and oncology, positions it for future growth despite current headwinds.
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