Daily Management Review

Japan's Takeda Targets Over Two-Fold Increase In Sale On 10 Years Helped By Its Drug Pipeline


Japan's Takeda Targets Over Two-Fold Increase In Sale On 10 Years Helped By Its Drug Pipeline
Within the next decade, the annual sale revenues of the company is expected to grow by more than 50 per cent to reach 5 trillion yen ($48.01 billion) because of the number of type of drugs it currently has in its pipeline, said Japan's Takeda Pharmaceutical on Wednesday.
After the completion last year of its $59 billion takeover of Shire, this largest drug maker of Japan is now trying to drive attention of investors and the market to the growth prospects that it has. Compared to the company’s domestic and global peers, the performance of the stocks of the company have been poor as the company remained focused on selling $10 billion of its non-core assets to generate funds to reduce debt.
"One of the questions that we've had to ask ourselves is, how can we help our investor base better understand our pipeline, and assume the same energy and enthusiasm that we have?" research and development president Andy Plump said in an online briefing to analysts and media.
A pipeline that comprises of 12 new drugs that the company plans to launch ion the market over the next few years was outlines by the company. The pipeline of drugs included a dengue fever vaccine and its Orexcin narcolepsy drugs which the company expects will be able to deliver $6 billion annually in sales.
Compared to the estimated sale revenue of 3.2 trillion yen this fiscal year, the company has set a target of 5 trillion yen in sales by March 2031.
"Takeda's management is keenly aware of its poor stock performance and would like analysts to take a more bullish view of its pipeline," Jefferies analyst Stephen Barker wrote in a research note. "But analysts may not be convinced until more data is available."
Takeda's pipeline was expanded and its global sales were diversified because of the Shire acquisition that was completed in January 2019. But that deal also resulted in a large pile of debt for the company.
In August, the company agreed to sell its Japanese consumer healthcare business to Blackstone Group which marked the company reaching its goal of asset disposals.
Takeda's shares, down 6.5 per cent this year, rose 1.2 per cent in Tokyo trading versus a 0.9 per cent gain in the broader market