Takeda’s Q1 FY2024 revenue up 14.1%

Takeda, a prominent Japanese pharmaceutical company, has announced a revenue of Y1,208bn ($7bn) for the first quarter (Q1) of the fiscal year 2024 (FY2024). This represents a 14.1% increase at actual exchange rates compared to Y1,058bn in the same period of the previous fiscal year. The company credits this substantial revenue growth to the robust performance of its growth and launch products, which have successfully driven core growth at constant exchange rates (CER). This performance helped offset the revenue impact from significant losses of exclusivity experienced in the prior fiscal year.

Takeda's portfolio of growth and launch products, which now constitutes 46% of its total revenue, experienced a 17.8% increase at CER. Despite the overall revenue growth, the company's operating profit for the period ending June 30, 2024, was Y166.3bn, showing a slight decline of 1.3% from Y168.6bn in Q1 FY2023. However, net profit saw an increase, rising by 6.5% to Y95.2bn compared to Y89.4bn in the same quarter of the previous fiscal year.

Earnings per share also improved, reaching Y61, up by 5.6% from Y58 in Q1 FY2023. Additionally, there was a significant surge in operating cash flow, which climbed by 84.3% to Y170.3bn from Y92.4bn in Q1 FY2023.

Milano Furuta, Takeda's Chief Financial Officer, expressed satisfaction with the company's performance in the first quarter. Furuta highlighted that the Growth and Launch Products have been instrumental in driving overall revenue growth, reflecting strong commercial execution. New product launches, geographic expansion, and effective lifecycle management have enabled Takeda to reach more patients and communities globally.

Furuta also pointed out that the first quarter's core operating profit benefitted from the strong performance of Growth and Launch Products, along with the phasing of research and development (R&D) investment, reduction in other operating expenses (OPEX), and a milder than anticipated erosion of VYVANSE (lisdexamfetamine dimesylate) generics in the US.

This robust performance in Q1 FY2024 reinforces Takeda's positive outlook for sustainable revenue and profit growth in the near term. Furuta noted that there is no change to the full-year FY2024 outlook announced in May. The company anticipates an accelerated impact of generic erosion in the coming quarters and plans to focus its R&D investment in the second half of the year, with the initiation of multiple Phase III programs.

In June 2024, Takeda received approval from the European Commission for Fruzaqla (fruquintinib), a treatment for adults with metastatic colorectal cancer. This approval marks a significant milestone for Takeda, further expanding its portfolio and strengthening its position in the oncology market. The company continues to focus on its growth and development strategies to meet the needs of patients and healthcare providers worldwide.