TKPHF - Takeda Pharmaceutical Company Limited (TAK) Q4 2024 Earnings Call Transcript

2025-05-09 09:26:09 ET

Takeda Pharmaceutical Company Limited (TAK)

Q4 2024 Results Conference Call

May 08, 2025 06:00 AM ET

Company Participants

Christopher O’Reilly - Head, Investor Relations

Christophe Weber - President & Chief Executive Officer

Milano Furuta - Chief Financial Officer

Andy Plump - President, R&D

Julie Kim - President of the U.S. Business Unit & U.S. Country Head

Giles Platford - President of the Plasma-Derived Therapies Business Unit

Conference Call Participants

Hidemaru Yamaguchi - Citi

Shinichiro Muraoka - Morgan Stanley

Stephen Barker - Jefferies

Mike Nedelcovych - TD Cowen

Hiroyuki Matsubara - Nomura Securities

Seiji Wakao - J.P. Morgan

Tony Ren - Macquarie

Akinori Ueda - Goldman Sachs

Fumiyoshi Sakai - UBS

Presentation

Christopher O’Reilly

Thank you very much for taking time out of their busy schedule to join our earnings announcement for FY '24 for Takeda. I'm the master of ceremony, Head of IR. My name is O'Reilly. Thank you for this opportunity. [Operator Instructions]

And before starting, I'd like to remind everyone that we'll be discussing forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today. The factors that could cause our actual results to differ materially are discussed in the most recent Form 20-F and our other SEC filings.

Please also refer to the important notice on Page 2 of the presentation regarding forward-looking statements and our non-IFRS financial measures, which will also be discussed during this call. Definitions of our non-IFRS measures and the reconciliation with the comparative IFRS financial measures are included in the appendix in the presentation. Please also refer to Page 2 for important reference.

Moving on to today's presentation. Today, we have President and CEO, Christophe Weber; Chief Financial Officer, Milano Furuta; President, R&D, Andy Plump presenting to you today. And this will be followed by question and answer. Let us get started. Christophe, over to you.

Christophe Weber

Thank you, Chris, and thank you, everyone, for joining us today. If we go to the first slide, yes, our fiscal year 2024 performance was driven by a combination of factors: significant generic impact from VYVANSE loss of exclusivity; strong momentum in our Growth and Launch Product portfolio, which more than offset the generic impact; and robust OpEx control, which helped grow our core operating profit margin. We also demonstrated the potential of our pipeline with accelerated progress in late-stage programs.

Looking at our financial results. Fiscal year '24 core revenue grew 2.8% at constant exchange rate, driven by our Growth and Launch Product, which grew 14.7%. This portfolio of product now accounts for 48% of Takeda total core revenue.

Our core operating profit for the full year was JPY 1.2 billion, representing growth of 4.9% at constant exchange rate. Core EPS fell slightly short of our upgraded guidance due mainly to higher-than-anticipated tax expense. Core operating profit margin was 25.4%. This was more than 2 percentage points above our original expectation and represent growth of 65 basis points compared with the previous fiscal year or 270 basis points if we exclude VYVANSE impact. Significant OpEx savings resulting from our multiyear efficiency programs were an important driver of core operating profit and margin growth. Milano will provide an update on the efficiency program in his presentation.

In addition, we continue to progress our late-stage pipeline in fiscal year '24, supporting our future growth. We now have 6 Phase III programs underway across our core therapeutic areas. In March, we read out positive and highly promising top line results from a Phase III study of rusfertide in polycythemia vera, a rare form of blood cancer. During fiscal year 2024, we also completed Phase III enrollment for zasocitinib in psoriasis and oveporexton in narcolepsy type 1. These are on track for data readout in this year with target filing date in fiscal year '25 and '26. We are excited by the opportunities in our pipeline. This differentiated product has the potential to transform the life of patients in each of our therapeutic focus areas....

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