EQS-Ad-hoc: Takeda Pharmaceutical Company Limited / Key word(s): Strategic Company Decision OSAKA, Japan, May 9, 2024 - Takeda (TSE:4502/NYSE:TAK) announced that its Board of Directors today approved a significant multi-year program focused on organizational agility, spending efficiencies and leveraging the company's capabilities in data, digital and technology (DD&T). The program aims to improve growth through continued advancement of Takeda's Growth & Launch Products and progressing the company's robust late-stage pipeline to deliver innovative therapies for patients, while helping drive Core Operating Profit margin improvement target of low- to mid-30%. The program will start in FY2024 and includes initiatives to optimize its workforce-simplifying some division structures-and rigorously prioritize its R&D pipeline, while investing in DD&T to increase productivity and efficiency across the organization. Procurement-led initiatives will be centered on optimizing external spend with the goal of achieving cost savings and efficiencies in Takeda's supply chain and vendor management processes. Details and timing of specific actions within the framework of these broader initiatives will be decided in due course. This program underscores Takeda's commitment to driving sustainable growth, operational excellence and financial resilience in the years ahead, while enabling it to create more long-term value for patients, the global health care system and society. Takeda estimates that efficiencies and savings resulting from the multi-year program, offset by investments in its late-stage pipeline and DD&T, will drive 100-250 basis points of Core Operating Profit margin improvement each year from FY2025 towards its target of low- to mid-30%-with the amount of basis point improvement each year dependent upon various factors, including business environment and foreign exchange rates. Primarily as a result of the initiatives, Takeda estimates it will incur one-time restructuring expenses of JPY 140.0 billion in FY2024, which are reflected in the consolidated reported forecast for FY2024 that was announced today, with lower restructuring expenses also anticipated in FY2025 and FY2026. 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.
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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. 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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 financial measures to their most directly comparable IFRS measures, which are in the Financial Appendix appearing at the end of our investor presentation of our Q4 FY2023 financial results (available at www.takeda.com/investors). The usefulness of Core Financial Measures to investors has significant limitations including, but not limited to, (i) they are not necessarily identical to similarly titled measures used by other companies, including those in our industry, (ii) they exclude financial information and events, such as the effects of non-cash expenses such as dispositions or amortization of intangible assets, that some may consider important in evaluating Takeda's performance, value or prospects for the future, (iii) they exclude items or types of items that may continue to occur from period to period in the future (however, it is Takeda's policy not to adjust out normal, recurring cash operating expenses necessary to operate our business) and (iv) they may not include all items which investors may consider important to an understanding of our results of operations, or exclude all items which investors may not consider to be so.
### End of Inside Information 09-May-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
| Language: | English |
| Company: | Takeda Pharmaceutical Company Limited |
| 1-1, Nihonbashi-Honcho 2-Chrome, Chuo-ku | |
| 103-8668 Tokyo | |
| Japan | |
| Phone: | +81-3-3278-2039 |
| E-mail: | hisashi.tokinoya@takeda.com |
| ISIN: | JP3463000004, XS1843449981, XS1843450138, XS1843449049, XS1843449809, XS1843449122, XS1843449395, |
| WKN: | 853849 |
| Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1898749 |
| End of Announcement | EQS News Service |
1898749 09-May-2024 CET/CEST
