Takeda Pharmaceutical, a leading Japanese drugmaker, has reported a net loss in the second quarter of the fiscal year ending March 2024. This loss is primarily due to impairment losses on certain products. As a result, Takeda has revised its net-profit forecast for the fiscal year.
Net Loss and Revised Forecast
For the three months ended September 30, Takeda recorded a net loss of 48.0 billion yen ($319.5 million). This is a significant decrease compared to the estimated net profit of Y70.41 billion in a poll conducted by Quick, as well as the net profit of Y61.7 billion in the same period last year.
Moreover, Takeda now predicts a 71% drop in its net profit for the fiscal year ending March 2024. The revised forecast indicates a projected net profit of Y93.00 billion, as opposed to the previous estimate of a 55% decrease to Y142.00 billion.
Impairment Losses on Key Products
Takeda has reported impairment losses on two important drugs: Alofisel and Exkivity. Alofisel, which is a stem-cell therapy for Crohn’s disease, recently yielded unfavorable results in a clinical trial. Consequently, Takeda experienced financial setbacks related to this product. Additionally, Takeda plans to voluntarily withdraw Exkivity from the market following an unfavorable trial outcome.
Despite the challenges, Takeda’s second-quarter revenue showed growth. It increased by 6.4% compared to the same period last year, reaching Y2.102 trillion. However, sales of Vyvanse, a drug used to treat attention deficit hyperactivity disorder, fell by 7.3% to Y103.1 billion. This decline can be attributed to Takeda losing exclusivity in the U.S. market for Vyvanse in late August.
In conclusion, Takeda Pharmaceutical’s second-quarter performance has been impacted by impairment losses on key products. The company has revised its net-profit forecast for the fiscal year, reflecting a significant decrease. Despite these challenges, Takeda’s second-quarter revenue has shown growth, albeit with a decline in sales of Vyvanse.
- Kosaku Narioka