2024-07-19 09:56:40 ET
Summary
- Takeda Pharmaceutical Company Limited showed signs of improvement despite revenue declines in oncology and neurosciences, thanks to gains in gastrointestinal and inflammation sectors and strategic leadership changes.
- The company's “returning to growth program” aims to increase operating margins by 100-250 basis points annually from 2025 onwards.
- Despite a challenging FY2023 with a significant net profit decline, Takeda expects its AI-powered returning to growth program to improve financial stability and shareholder returns by 2025.
- Takeda's long-term forecast looks brighter, but FY2024 projections do not support a rate upgrade.
Thesis
Last March, I made my debut in Seeking Alpha by analyzing Takeda Pharmaceutical Company Limited (TAK). In the article, I highlighted that the company was showing signs of improvement, despite the decline of revenue from key areas such as oncology and neurosciences. Among those signs were the revenue increase observed from the gastrointestinal and inflammation sector, the approval of Eohilia , the announcement of Milano Furuta as new Chief Financial Officer ((CFO)), who took the role on April 1st, and the overall pipeline progression.
Since then, the company has seen the approval of a few new products, and announced the progression of 6 product candidates into Phase 3 clinical trials. In addition, Takeda held its FY2023 earnings call and the annual shareholder meeting in May and June respectively, where they provided a full overview of what they called the “return to growth program,” its operational updates, its 2023 financial statements and financial guidance for 2024 and onwards. The company reports earnings again post-market on July 31st....
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For further details see:
Takeda's AI-Powered Strategy To Optimize Operations And Accelerate Its Pipeline