Takeda Launches Growth Program for Enhanced Profit Margins in FY2024

OSAKA, Japan, May 9, 2024 – Takeda (TSE:4502/NYSE:TAK) announced that its Board of Directors today approved a significant multi-year program focused on organizational agility, spending efficiencies and leveraging the company’s capabilities in data, digital and technology (DD&T). The program aims to improve growth through continued advancement of Takeda’s Growth & Launch Products and progressing the company’s robust late-stage pipeline to deliver innovative therapies for patients, while helping drive Core Operating Profit margin improvement target of low- to mid-30%.

The program will start in FY2024 and includes initiatives to optimize its workforce—simplifying some division structures—and rigorously prioritize its R&D pipeline, while investing in DD&T to increase productivity and efficiency across the organization. Procurement-led initiatives will be centered on optimizing external spend with the goal of achieving cost savings and efficiencies in Takeda's supply chain and vendor management processes. Details and timing of specific actions within the framework of these broader initiatives will be decided in due course.

This program underscores Takeda's commitment to driving sustainable growth, operational excellence and financial resilience in the years ahead, while enabling it to create more long-term value for patients, the global health care system and society.

Takeda estimates that efficiencies and savings resulting from the multi-year program, offset by investments in its late-stage pipeline and DD&T, will drive 100-250 basis points of Core Operating Profit margin improvement each year from FY2025 towards its target of low- to mid-30%—with the amount of basis point improvement each year dependent upon various factors, including business environment and foreign exchange rates. Primarily as a result of the initiatives, Takeda estimates it will incur one-time restructuring expenses of JPY 140.0 billion in FY2024, which are reflected in the consolidated reported forecast for FY2024 that was announced today, with lower restructuring expenses also anticipated in FY2025 and FY2026.

About Takeda

Takeda is focused on creating better health for people and a brighter future for the world. We aim to discover and deliver life-transforming treatments in our core therapeutic and business areas, including gastrointestinal and inflammation, rare diseases, plasma-derived therapies, oncology, neuroscience and vaccines. Together with our partners, we aim to improve the patient experience and advance a new frontier of treatment options through our dynamic and diverse pipeline. As a leading values-based, R&D-driven biopharmaceutical company headquartered in Japan, we are guided by our commitment to patients, our people and the planet. Our employees in approximately 80 countries and regions are driven by our purpose and are grounded in the values that have defined us for more than two centuries. For more information, visit www.takeda.com.

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