OSAKA, JAPAN -- Takeda (TOKYO:4502/NYSE:TAK) today announced financial results for fiscal year 2023 (period ended March 31, 2024), delivering its Management Guidance for Core Operating Profit and exceeding its Management Guidance for Revenue and Core EPS performance at CER, in a year of significant loss-of-exclusivity impact.

Takeda is committed to growing its business through continued advancement of its Growth & Launch Product portfolio and progression of six promising programs through its late-stage pipeline, while maintaining cost discipline and achieving its Core Operating Profit margin improvement target. Beginning in FY2024, the company will implement a significant, multi-year efficiency program focused on organizational agility, procurement saving, and capitalizing on its ongoing investment in data, digital and technology, including AI.

Takeda president and chief executive officer, Christophe Weber, commented:

“With three new therapy approvals from the U.S. FDA in FY2023, Takeda’s performance demonstrates the potential of our pipeline and our ability to bring our innovative medicines to patients. In an otherwise challenging year, our Core financial results reinforce my confidence in our resilience and our ability to navigate the short-term impact of generic competition to return to sustainable revenue and profit growth beginning in FY2025.

“As we look ahead to FY2024, we anticipate having up to six programs in Phase 3 development. Advancing these promising potential therapies through late-stage development while moderately increasing our biopharma R&D investment is requiring rigorous prioritization, efficiencies and organizational agility.

“Furthermore, beginning in FY2024 we are implementing a multi-year program to improve our efficiency through organizational agility, capital savings and leveraging our capabilities in data, digital and technology. In addition to revenue growth from our Growth & Launch Products and significant decline in generic exposure, we expect this program will help drive Core Operating Margin improvement of 100 - 250 basis points per year from FY2025.”

Takeda chief financial officer, Milano Furuta, commented:

“Takeda delivered or exceeded full year Management Guidance for Revenue, Core Operating Profit and Core EPS performance at CER, driven by continued strong performance in our Growth & Launch Product portfolio—with Core Operating Profit performance impacted by generic entrants for high-margin products and strategic investments in R&D and our data, digital and technology capabilities to ensure our long-term competitiveness.

“In alignment with our progressive dividend policy and reflecting confidence in our long-term growth outlook and cash flow generation, we are proposing a dividend increase for a second consecutive year from 188 yen per share to 196 yen per share.

“While we anticipate revenue to remain flat or decline slightly at CER in FY2024, we expect double-digit CER revenue growth from our Growth & Launch Products, accounting for approximately 50% of our total revenue and helping to offset remaining impact from generic competition. With no further significant loss of exclusivity impact expected from FY2025 until the early 2030s, we remain focused on returning to sustainable revenue and profit growth from FY2025 onwards and are confident in our long-term growth trajectory.”

*From FY2024, we will re-name Free Cash Flow as currently calculated as “Adjusted Free Cash Flow” (with “Free Cash Flow” to be reported as Operating Cash Flow less Property, Plant and Equipment).