Takeda Pharmaceutical - $4502.JP

What’s Takeda Pharmaceutical Business Model?

Takeda Pharmaceutical Company Limited is engaged in research and development, manufacturing, sales and marketing, and import and export of pharmaceutical drugs. The Company focuses on the core therapeutic areas of oncology, gastrointestinal, and central nervous system disease.

What Takeda Pharmaceutical is doing in more details?

The work of Takeda Pharmaceutical Company started way back in 1781, when its predecessor began selling traditional Japanese and Chinese remedies.

These days, Takeda is a global, values-based, research and development (R&D) driven biopharmaceutical company, which operates in approximately 80 countries and regions across the world.

Top-selling products include ulcerative colitis drug Entyvio, anti-cancer agent Adcetris, and antidepressant Trintellix. The company is also a leading maker of over-the-counter medications such as cold remedies and vitamins. Its largest market is the US, which brings in about 50% of revenue.

Where Takeda Pharmaceutical is Operating?

Product sales contribute more than 95% of Takeda’s total revenue. The company also makes money on out-licensing and service.

The company is focused on four therapeutic areas: oncology, rare genetics and hematology, neuroscience, and gastroenterology (GI). The company also makes targeted R&D investments in plasma-derived therapies (PDT) and vaccines.

Gastroenterology provides about 25% of the company’s total revenue. PDT immunology, oncology, neuroscience account for about 15% each, rare hematology brings in nearly 10%, rare metabolic and hereditary angioedema represent approximately 5% each, while other products generate the remaining.

Where is the geographical reach of Takeda Pharmaceutical?

Headquartered in Japan, Takeda also has major regional locations in Austria, Japan, Singapore, Switzerland, and the US.

The company’s network span in more than 80 countries and regions in the Asia Pacific, the Americas, Europe, and Africa. The US is Takeda’s largest market, bringing in nearly 50% of revenue, followed by Europe and Canada with about 20% of revenue.

Japan accounts for more than 15%, Asia and Latin America generate about 5% each, and Russia/CIS and other provide the remaining.

What is Takeda Pharmaceutical’s Sales and Marketing Strategy?

Takeda sells its products to retail customers, government agencies, wholesalers, health insurance companies and managed healthcare organizations.

What is Takeda Pharmaceutical Financial Performance?

Revenue for the fiscal year ended March 31, 2021 was ¥3.2 trillion, a decrease of ¥93.4 billion, or 3%, compared to the previous fiscal year.

Gastroenterology (“GI”) and Plasma-Derived Therapies (“PDT”) Immunology contributed to positive revenue growth, however, this was offset by intensified competition and generic erosion in Rare Diseases and the negative impact across the portfolio from changes in foreign exchange rates.

In 2020, the company had a net profit of ¥44.3 billion, a 67% decrease from the previous year’s net profit of ¥135.1 billion.

The company’s cash at the end of 2020 was ¥637.6 billion. Operating activities generated ¥669.8 billion, while investing activities provided ¥292.1 trillion. Financing activities used ¥1 trillion mainly for repayments of bonds and long-term loans.

What is Takeda Pharmaceutical Future Strategy?

The company’s business is organized as a single operating segment, reflecting the presentation of information to its management for the purposes of allocating resources, measuring performance and forecasting future periods.

The company may also acquire new businesses to expand its R&D capabilities (including expanding into new methodologies) and to acquire new products (whether in the development pipeline or at the marketing stage) or enter other strategic regions.

Similarly, the company divests from businesses and product lines to maintain its focus on key growth drivers and to manage its portfolio.

What are Takeda Pharmaceutical’s Mergers and Acquisitions?

In late 2021, Takeda announced to acquire GammaDelta Therapeutics Limited (GammaDelta), a company focused on exploiting the unique properties of gamma delta (?d) T cells for immunotherapy.

The acquisition expands Takeda’s immuno-oncology and innate immune cell therapy portfolio with novel platforms leveraging ?dT cells for the potential treatment of solid tumors and hematological malignancies.

In addition to early-stage cell therapy programs, Takeda will obtain GammaDelta’s allogeneic variable delta 1 (Vd1) gamma-delta (?d) T cell therapy platforms, which includes both blood-derived and tissue-derived platforms.

In early 2021, Takeda announced to acquire Maverick Therapeutics, a private biopharmaceutical company pioneering conditionally active bispecific T-cell targeted immunotherapies for up to approximately $525 million in upfront and potential milestone payments subject to certain adjustments.

Under the agreement, Takeda will obtain Maverick’s T-cell engager COBRA platform and a broad development portfolio, including Maverick’s lead development candidate TAK-186 (MVC-101) currently in a Phase 1/2 study for the treatment of EGFR-expressing solid tumors, and TAK-280 (MVC-280), which is anticipated to enter the clinic in the second half of Takeda’s fiscal year 2021 for the treatment of patients with B7H3-expressing solid tumors.

In early 2020, Takeda acquired PvP Biologics following the conclusion of a Phase 1 proof-of-mechanism study of investigational medicine TAK-062 (Kuma062) for the treatment of uncontrolled celiac disease.

TAK-062 is a potential best-in-class, highly potent super glutenase ? a protein that degrades ingested gluten ? that was computationally engineered to treat celiac disease, a serious autoimmune disease where the ingestion of gluten leads to inflammation and damage in the small intestine.

The Phase 1 study investigated TAK-062’s safety and tolerability in both healthy volunteers and people with celiac disease. The ability of TAK-062 to degrade ingested gluten was studied in healthy volunteers. Takeda plans to submit data from the Phase 1 study for presentation at an upcoming medical congress.

What is Takeda Pharmaceutical’s Background?

In 1787 Chobei Takeda I started a business selling tradition Japanese and Chinese herbal medicines in Osaka, Japan. In the 1860s, with his great-grandson at the helm, the business started importing western medicines.

The company entered the manufacturing business in 1895 and, in 1914, it established a research division so that it could develop its own products.

The company was incorporated as Chobei Takeda & Co. in 1925, transitioning from an individually owned business to a corporate organization. Chobei Takeda was renamed Takeda Pharmaceutical in 1943.

It went public in 1949. In the 1960s Takeda began operating in other Asian markets. It entered the US and European markets in the 1990s.

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