Takeda Pharmaceutical Company Limited (TAK) has announced strong financial results for the first half of fiscal year 2024, ended September 30, 2024. Revenue grew by 13.4% at actual exchange rates (AER) and 5.0% at constant exchange rates (CER), driven by the continued advancement of Growth & Launch Products, which saw an 18.7% increase at CER.
The company's core operating profit increased by 12.9% at CER, resulting in a core operating profit margin of 30.2%. This performance has led Takeda to upgrade its full-year forecasts and management guidance, reflecting stronger-than-anticipated results and revised foreign exchange assumptions.
Key Growth Drivers
ENTYVIO, Takeda's treatment for inflammatory bowel diseases, experienced double-digit revenue growth at CER, boosted by the launch of the ENTYVIO pen in the U.S. The company also achieved geographical expansion with approvals of ADZYNMA in the EU and FRUZAQLA in Japan, further contributing to revenue growth.
Pipeline Advancements
Takeda has made significant progress in its late-stage pipeline, with the initiation of a Phase 3 trial of TAK-861 for narcolepsy type 1 in August. This advancement underscores Takeda's commitment to developing innovative treatments for unmet medical needs. Further details on the company's R&D strategy and pipeline updates will be presented at Takeda's R&D Day on December 12-13, 2024.
Financial Outlook
Takeda has upgraded its FY2024 management guidance, primarily due to milder-than-anticipated generic erosion of VYVANSE and strong business momentum. The company's revised forecasts reflect expected foreign exchange rates during the remaining second half of FY2024.
"In the first half of fiscal year 2024, we made further progress in advancing our pipeline, including the initiation of our TAK-861 Phase 3 trial for narcolepsy type 1," said Christophe Weber, Takeda's chief executive officer. "Our late-stage programs continue to advance, with several in Phase 3 development this fiscal year, and have the potential to transform the lives of patients around the world."
Milano Furuta, Takeda's chief financial officer, added, "We are upgrading our FY2024 full year outlook, reflecting stronger than anticipated first half performance as well as updated foreign exchange assumptions for the year. Full-year guidance reflects our intention to increase R&D investment in the second half to support our late-stage pipeline."
