Osaka, JAPAN, June 22, 2020 – Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) (“Takeda”) today announced the anticipated financial impact of the European Commission’s (EC) decision to release Takeda from a commitment to divest Shire’s pipeline compound SHP647 and certain associated rights (“SHP647”) on its Consolidated Statements of Profit or Loss for the fiscal year ending March 31, 2021. On May 28, 2020 the EC released Takeda from the obligation to divest SHP647, a commitment that was provided by Takeda to secure regulatory clearance of its acquisition of Shire plc (“Shire”). At the time Takeda announced this decision by the EC in its press release, “European Commission Releases Takeda from Commitment to Divest Shire’s Pipeline Compound SHP647”, the resulting financial impact was unavailable. The update of the anticipated financial impact is as follows.
As a result of the EC’s decision to release Takeda from the obligation to divest SHP647, assets and liabilities related to SHP647 will cease to be classified as held for sale on Takeda’s Consolidated Statements of Financial Position as of June 30, 2020. Additionally, Takeda will reassess and update its previously recognized liabilities to reflect expected future costs related to SHP647, such as program termination costs. As a result, Takeda estimates that it will recognize a one-time net gain of approximately 564 million USD in Reported Operating Profit and a one-time net gain of approximately 400 million USD in Reported Net Profit attributable to owners of the Company for the three-month period ending June 30, 2020. Takeda will update its forecast for the fiscal year ending March 31, 2021 at the appropriate timing.
The net gain as a result of the EC’s decision to release Takeda from the obligation to divest SHP647 will be booked as Other Operating Income. Since it will be a one-time gain related to the Shire acquisition, while it will impact reported profit, it will not impact Core Operating Profit or Core Net Profit.
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About Takeda Pharmaceutical Company Limited
Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to bringing Better Health and a Brighter Future to patients by translating science into highly-innovative medicines. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Diseases, Neuroscience, and Gastroenterology (GI). We also make targeted R&D investments in Plasma-Derived Therapies and Vaccines. We are focusing on developing highly innovative medicines that contribute to making a difference in people's lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Our employees are committed to improving quality of life for patients and to working with our partners in health care in approximately 80 countries.
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