pharmafileMay 15, 2018
Tag: financials , guidance , Takeda
After posting its financials from 2017 and its guidance for the year to come, it’s clear to see why Takeda needed to inject some growth into the company through its mega-merger with Shire.
It performed well in 2017, with operating profit soaring by 55.1% on the previous year but this was partially based on the sale of its stake in Wako Pure Chemicals Industries for $1.7 billion.
What really indicated the need for Takeda’s transformational purchase of Shire were two factors: a predicted drop in operating profit of 16.9% running into 2018 and a revenue performance of -0.2% in Japan during 2017.
The drop in operating profit was explained by profits from Velcade taking a 3.5% hit through the entry of generic competition, with sales likely to plummet further as more competitors enter the market.
It leaves Takeda with a hole in its portfolio that can only be partially filled by sales from other products, such as Entyvio.
Adding Shire to the business should bolster its pipeline and provide it a platform to move away from any reliance on a stagnant Japanese market.
Christophe Weber, President and Chief Executive Officer of Takeda, commented: "Takeda's transformation is delivering superior results as we execute against our key mid-term priorities of growing the portfolio, strengthening the pipeline, and boosting profitability. In FY2017, our Growth Drivers maintained their strong momentum, which together with disciplined cost management under the Global Opex Initiative resulted in industry-leading revenue and earnings growth."
He continued, "The strength of the underlying business means we expect to maintain revenue and earnings growth momentum in FY2018, and I am confident that through strategic focus and superior execution, Takeda will continue to deliver long-term value to patients and shareholders."
The financials were posted not long after it was revealed that the company is seeking a loan of $30.85 billion to finance its deal for Shire, making it a record-breaking amount in Asian region.
On the conclusion of the Shire deal, Takeda will become a top 10 pharma company.
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