Zasocitinib

OSAKA, Japan--( BUSINESS WIRE )--Takeda ( TOKYO:4502/NYSE:TAK ) today announced earnings results for the third quarter of fiscal year 2024 (nine months ended December 31, 2024) showing continued advancement of its Growth & Launch Products, which delivered double-digit growth of 14.6% at CER. The company has upgraded its full year outlook for growth, reflecting strong year-to-date product performance and OPEX efficiencies, as well as revised foreign exchange assumptions. Takeda continues to advance multiple late-stage programs and is on track for three Phase 3 data readouts within the calendar year 2025. The company expects three regulatory filings in FY2025-FY2026 and five additional regulatory filings in FY2027-FY2029. Six of these late-stage programs are estimated to have the potential to generate peak revenues ranging from USD 10 billion to 20 billion in total and contribute to long-term growth. Takeda also announced today its decision to buy back shares up to JPY 100.0 billion, underscoring confidence in its strong business momentum and commitment to shareholder returns. For details, see release: Takeda Announces Acquisition of Own Shares Takeda chief financial officer, Milano Furuta, commented: “We are raising our Management Guidance and reported & Core forecasts for the full year, pivoting to a growth outlook for revenue and operating profit on the strength of product momentum and OPEX efficiencies from our efficiency program. We are confident that we will grow our Core Operating Profit margin this fiscal year. “As highlighted at our R&D Day in December 2024, we are on track to three Phase 3 data readouts within calendar year 2025, strengthening confidence in our long-term growth outlook. “The announcement of our new share buyback program, approved by Takeda’s Board of Directors, demonstrates our commitment to shareholder returns.” FINANCIAL HIGHLIGHTS for FY2024 Q3 YTD Ended December 31, 2024 (Billion yen, except percentages and per share amounts) FY2024 Q3 YTD FY2023 Q3 YTD vs. PRIOR YEAR (Actual % change) Revenue 3,528.2 3,212.9 +9.8% Operating Profit 417.5 224.1 +86.3% Net Profit 211.1 147.1 +43.5% EPS (Yen) 134 94 +42.1% Operating Cash Flow 835.0 437.8 +90.8% Adjusted Free Cash Flow (Non-IFRS) 568.3 36.3 +1,466% Core (Non-IFRS) (Billion yen, except percentages and per share amounts) FY2024 Q3 YTD FY2023 Q3 YTD vs. PRIOR YEAR (Actual % change) vs. PRIOR YEAR (CER % change) Revenue 3,528.2 3,212.9 +9.8% +4.5% Operating Profit 1,006.3 865.6 +16.3% +10.1% Margin 28.5% 26.9% +1.6pp ― Net Profit 698.9 643.6 +8.6% +1.9% EPS (Yen) 443 412 +7.5% +0.9% FY2024 Outlook Updating Full Year Management Guidance and Reported and Core Forecasts Takeda has upgraded its FY2024 Management Guidance, primarily driven by product momentum and OPEX savings. In addition, and also reflecting revised foreign exchange assumptions for the year, Takeda has raised its FY2024 reported and Core forecasts from the previous forecast. For more details, see release: Notice of the Revised Forecast of Consolidated Financials for FY2024 (IFRS) FY2024 Management Guidance Core Change at CER (Non-IFRS) FY2024 PREVIOUS MANAGEMENT GUIDANCE (October 2024) FY2024 REVISED MANAGEMENT GUIDANCE (January 2025) Core Revenue Flat to slightly increasing Low-single-digit % increase Core Operating Profit Mid-single-digit % decline Low-single-digit % increase Core EPS (Yen) Approx 10% decline Flat to slightly declining FY2024 Reported and Core Forecasts (Billion yen, except percentages and per share amounts) FY2024 PREVIOUS FORECAST (October 2024) FY2024 REVISED FORECAST (January 2025) Revenue 4,480.0 4,590.0 Core Revenue (Non-IFRS) 4,480.0 4,590.0 Operating Profit 265.0 344.0 Core Operating Profit (Non-IFRS) 1,050.0 1,150.0 Net Profit 68.0 118.0 EPS (Yen) 43 75 Core EPS (Yen) (Non-IFRS) 456 507 Adjusted Free Cash Flow (Non-IFRS) 400.0-500.0 550.0-650.0 Annual Dividend per Share (Yen) 196 196 Positive Momentum in High-Value, Late-Stage Pipeline The company is building strong momentum with its high-value, late-stage programs. The transformative value these programs can deliver to patients, as well as the significant revenue potential through 2030 and beyond, were presented at the R&D Day event held in December 2024. Among the multiple late-stage programs presented, the company expects three Phase 3 data readouts in the calendar year 2025 with filings anticipated in FY2025-FY2026 for the following programs and indications: oveporexton (TAK-861) for the treatment of narcolepsy type 1, zasocitinib for the treatment of psoriasis, and rusfertide for the treatment of polycythemia vera, a rare chronic blood disorder Moreover, five additional indication filings for late-stage programs are on pace for FY2027-FY2029. zasocitinib for the treatment of psoriatic arthritis, mezagitamab for treatments of immune thrombocytopenia (ITP), a rare immune-mediated bleeding disorder, and immunoglobulin A nephropathy (IgAN), a chronic progressive autoimmune mediated kidney disease, fazirsiran for the treatment of alpha-1 antitrypsin deficiency-associated liver disease, and elritercept for the treatment of anemia associated with myelodysplastic syndrome Beyond its high-value, late-stage pipeline, Takeda will continue advancing its early-stage pipeline and focusing on strategic business development opportunities, to deliver treatments that have the potential to change patients’ lives. Additional Information About Takeda’s FY2024 Q3 YTD Results For more details about Takeda’s FY2024 Q3 YTD results, commercial progress, pipeline updates and other financial information, including key assumptions in the FY2024 forecast and management guidance as well as definitions of non-IFRS measures, please refer to Takeda’s FY2024 Q3 investor presentation (available at https://www.takeda.com/investors/financial-results/quarterly-results/ ) About Takeda Takeda is focused on creating better health for people and a brighter future for the world. We aim to discover and deliver life-transforming treatments in our core therapeutic and business areas, including gastrointestinal and inflammation, rare diseases, plasma-derived therapies, oncology, neuroscience and vaccines. Together with our partners, we aim to improve the patient experience and advance a new frontier of treatment options through our dynamic and diverse pipeline. As a leading values-based, R&D-driven biopharmaceutical company headquartered in Japan, we are guided by our commitment to patients, our people and the planet. Our employees in approximately 80 countries and regions are driven by our purpose and are grounded in the values that have defined us for more than two centuries. For more information, visit www.takeda.com . Important Notice For the purposes of this notice, “press release” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited (“Takeda”) regarding this press release. This press release (including any oral briefing and any question-and-answer in connection with it) is not intended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the public by means of this press release. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. This press release is being given (together with any further information which may be provided to the recipient) on the condition that it is for use by the recipient for information purposes only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). 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These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those expressed or implied by the forward-looking statements: the economic circumstances surrounding Takeda’s global business, including general economic conditions in Japan and the United States; competitive pressures and developments; changes to applicable laws and regulations; challenges inherent in new product development, including uncertainty of clinical success and decisions of regulatory authorities and the timing thereof; uncertainty of commercial success for new and existing products; manufacturing difficulties or delays; fluctuations in interest and currency exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of health crises, like the novel coronavirus pandemic; the success of our environmental sustainability efforts, in enabling us to reduce our greenhouse gas emissions or meet our other environmental goals; the extent to which our efforts to increase efficiency, productivity or cost-savings, such as the integration of digital technologies, including artificial intelligence, in our business or other initiatives to restructure our operations will lead to the expected benefits; and other factors identified in Takeda’s most recent Annual Report on Form 20-F and Takeda’s other reports filed with the U.S. Securities and Exchange Commission, available on Takeda’s website at: https://www.takeda.com/investors/sec-filings-and-security-reports/ or at www.sec.gov . Takeda does not undertake to update any of the forward-looking statements contained in this press release or any other forward-looking statements it may make, except as required by law or stock exchange rule. Past performance is not an indicator of future results and the results or statements of Takeda in this press release may not be indicative of, and are not an estimate, forecast, guarantee or projection of Takeda’s future results. Financial information and Non-IFRS Measures Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). This press release and materials distributed in connection with this press release include certain financial measures not presented in accordance with IFRS, such as Core Revenue, Core Operating Profit, Core Net Profit for the year attributable to owners of the Company, Core EPS, Constant Exchange Rate (“CER”) change, Net Debt, Adjusted Net Debt, EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow. Takeda’s management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this press release. These non-IFRS measures exclude certain income, cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. Takeda’s non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared in accordance with IFRS (which we sometimes refer to as “reported” measures). Investors are encouraged to review the definitions and reconciliations of non-IFRS measures to their most directly comparable IFRS measures, which are in the Financial Appendix appearing at the end of our FY2024 Q3 investor presentation (available at www.takeda.com/investors ). Beginning in the quarter ended June 30, 2024, Takeda (i) changed its methodology for CER adjustments to results of subsidiaries in hyperinflation countries to present those results in a manner consistent with IAS 29, Financial Reporting in Hyperinflation Economies, (ii) re-named Free Cash Flow as previously calculated as “Adjusted Free Cash Flow” (with “Free Cash Flow” to be reported as Operating Cash Flow less Property, Plant and Equipment), and (iii) re-named Net Debt as previously calculated as “Adjusted Net Debt” (with “Net Debt” to be reported as the book value of bonds and loans less cash and cash equivalents). Peak Sales and PTRS Estimates References in this press release to peak revenue potential ranges are estimates that have not been adjusted for probability of technical and regulatory success (PTRS) and should not be considered a forecast or target. These peak revenue potential ranges represent Takeda’s assessments of various possible future commercial scenarios that may or may not occur. References in this press release to PTRS are to internal estimates of Takeda regarding the likelihood of obtaining regulatory approval for a particular product in a particular indication. These estimates reflect the subjective judgment of responsible Takeda personnel and have been approved by Takeda’s Portfolio Review Committee for use in internal planning. Medical information This press release contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drugs including the ones under development. Please refer to slide 5 of Takeda’s FY2024 Q3 investor presentation (available at https://www.takeda.com/investors/financial-results/quarterly-results/ ) for the definition of Growth & Launch Products.

A Bristol Myers Squibb drug that was first in its class to hit a certain immunological target now has positive data from two pivotal tests in psoriatic arthritis that could support expanding use of the product to this inflammatory autoimmune condition. Expanding approval of the drug, Sotkytu, to include psoriatic arthritis would grow revenue for a product that so far has fallen short of the blockbuster expectations that followed its 2022 approval in plaque psoriasis. Meanwhile, competition is heating up as competitors make headway with their own drug candidates for the target, an enzyme called TYK2. Psoriatic arthritis is an autoimmune disease that leads to painful swelling in joints and ligaments as well as skin lesions. First-line treatment includes disease-modifying antirheumatic drugs, both small molecules and biologics. For those whose disease does not respond to these therapies, a class of drugs called Janus kinase (JAK) inhibitors offer another treatment option. BMS’ Sotyktu could bring patients another option, and a potentially earlier one that also has a better safety profile. presented by Market Trends to Watch for Health Systems and Their Specialty Pharmacies The future looks bright for the integrated specialty pharmacy model – for health systems, providers, and most importantly, for patients. By Jake Gaffey, MBA, Chief Strategy Officer at Shields Health Solutions BMS said Monday that its TYK2 inhibitor met the main goal of two Phase 3 tests in active psoriatic arthritis, one that enrolled patients who were not previously treated with a disease-modifying antirheumatic drug and the other with patients who previously received TNF-alpha inhibitors, drugs from an older class of biologic medicines whose approved uses include treating psoriatic arthritis. Without releasing specific figures for the pair of 16-week studies, BMS said a significantly greater proportion of those treated with its drug achieved a 20% improvement or greater according to a composite measure of the signs and symptoms of the chronic autoimmune disorder. Also, the once daily pill met a key secondary goal measuring disease activity at week 16. TYK2, which is closely related to JAK proteins, is involved in signaling pathways associated with inflammation. Hitting TYK2 while avoiding JAKs is intended to be safer. The risks of hitting JAK proteins include cardiovascular and cancer complications. These risks are now flagged in a black box warning for the entire JAK inhibitor drug class. The FDA approved JAK-blocking drugs for psoriatic arthritis are Pfizer’s Xeljanz and AbbVie’s Rinvoq. JAK inhibitors were not used as a comparator in BMS’s placebo-controlled psoriatic arthritis tests, named POETYK PsA-1 and POETYK PsA-2. On measures of safety, BMS said the latest results are consistent with Sotyktu’s established safety profile from earlier clinical trials. In the pivotal study that led to the drug’s approval as a treatment for moderate-to-severe plaque psoriasis, the most common adverse event was upper respiratory tract infection. The company said it will work with clinical trial investigators to present detailed study results at upcoming medical conferences. Health IT Reducing Clinical and Staff Burnout with AI Automation As technology advances, AI-powered tools will increasingly reduce the administrative burdens on healthcare providers. By Dr. Michael Blackman, Chief Medical Officer at Greenway Health “These POETYK PsA-1 and POETYK PsA-2 findings demonstrate that oral Sotyktu has the potential to be the first TYK2 inhibitor for people living with psoriatic arthritis and reinforce the established efficacy and safety profile of Sotyktu,” Roland Chen, BMS’s senior vice president and head, immunology, cardiovascular and neuroscience development, said in a prepared statement. “We are encouraged by the positive data across both Phase 3 trials and look forward to discussing the results with health authorities.” With the latest data in psoriatic arthritis, BMS is trying to fend off competition. Takeda Pharmaceutical’s zasocitinib (formerly known as TAK-279), acquired in a $4 billion deal, has reached Phase 3 testing in psoriasis and mid-stage clinical development in psoriatic arthritis, Crohn’s disease, and ulcerative colitis. Startup Sudo Biosciences, which emerged from stealth in 2022, is developing TYK2 inhibitors for neuroinflammatory disorders. BMS reported Sotyktu accounted for $163 million in revenue for the first nine months of 2024, a 52.3% increase compared to the same period in 2023. In addition to the psoriatic arthritis research, the drug has reached late-stage clinical development in Sjogren’s syndrome and systemic lupus erythematosus.