Takeda Pharma sees 17% fall in operating profit

Reuters TOKYO (Reuters) — Japan’s Takeda Pharmaceutical Co. on Monday forecast a 17 percent fall in operating profit for the year through March 2019 as blood cancer drug Velcade looks set to lose exclusivity in the United States.

The decline, which is likely to be partly offset by growing sales of drugs such as bowel disease treatment Entyvio and heartburn and ulcer drug Takecab, underscores Takeda’s need to bolster its pipeline. It also comes days after it agreed to a record-breaking $62 billion deal to acquire London-listed Shire .

Profit for the year ended March 2018 grew 55 percent to ¥241.8 billion ($2.21 billion) - its highest in six years.

Entyvio sales grew 41 percent to ¥201.4 billion, with Takecab sales up 62 percent to ¥55.1 billion. Velcade sales fell 0.2 percent to ¥137.3 billion.

The Shire acquisition is expected to add strength in rare diseases and blood-derived therapies to Takeda’s three core areas of gastroenterology, oncology and neuroscience. It will also result in the U.S. market accounting for almost half of sales from a third currently.

Rare disease treatments are seen as more sheltered from price pressures in the U.S. affecting areas like oncology.

The Shire deal could close by the end of the year, Chief Executive Christopher Weber said last week. Remaining hurdles include receiving regulatory and shareholder approval.Speech

Click to play


+ -

Generating speech. Please wait...

Become a Premium Member to use this service.

Become a Premium Member to use this service.

Offline error: please try again.