Takeda reports higher sales, profit for fiscal 2017, but expects decline in current year

Takeda reported Monday that sales for fiscal 2017 grew 2.2 percent year-over-year to 1.8 trillion yen ($16.4 billion), with growth coming from products including Entyvio, Ninlaro and Takecab. The company's annual net income surged 62.6 percent to 186.9 billion yen ($1.7 billion), benefiting from a one-off gain of 106.3 billion yen ($970 million) from the sale of Wako Pure Chemical Industries to Fujifilm.

CEO Christophe Weber remarked "our growth drivers maintained their strong momentum, which together with disciplined cost management…resulted in industry-leading revenue and earnings growth." In the 12-month period, operating profit lifted 55.1 percent year-over-year to 241.8 billion yen ($2.2 billion), topping analyst expectations of 235.4 billion yen ($2.1 billion).

FirstWord Reports: Providing insight, analysis and expert opinion on important Pharma trends and challenging issues <Click here>

For the full year, sales of Entyvio climbed 40.6 percent to 201.4 billion yen ($1.8 billion), while revenue from Takecab jumped 61.7 percent to 55.1 billion yen ($503 million). In addition, sales of Ninlaro increased 58.1 percent to 46.4 billion yen ($424 million), with revenue from Velcade fairly flat at 137.3 billion yen ($1.3 billion), although US sales of the cancer therapy in the fourth quarter dropped 17.1 percent to 24.6 billion yen ($225 million).

Weber added "the strength of the underlying business means we expect to maintain revenue and earnings growth momentum in FY2018." However, for fiscal 2018, Takeda said that it expects revenue to fall 1.9 percent to 1.7 trillion yen ($15.5 billion), hit by the loss of exclusivity on Velcade in the US, with net profit forecast to slip 25.6 percent to 139 billion yen ($1.3 billion).

Last week, Takeda reached an agreement to acquire Shire for approximately 46 billion pounds ($62.5 billion), having had a number of earlier proposals rebuffed. The deal, which has been approved by both boards, is expected to close in the first half of 2019 (for related analysis, see ViewPoints: Takeda will have scale, but sustainability?).

To read more Top Story articles, click here.