Takeda’s annual profits for FY 2023 have been hit by more than 50%, prompting the company to say it will initiate several plans to optimise its workforce and prioritise its research and development (R&D) pipeline.

Takeda will take a one-time $900m (Y140bn) charge for the restructuring changes in FY 2024, with lower related expenses expected in FY 2025 and FY 2026. The company said the plan will help boost its core operating profit margin to a target of approximately 30%, as per a 9 May press release.

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The restructuring plan was announced on the same day Takeda released its FY 2023 results. The company reported a drop of 56.4% in operating profits in FY 2023, even though the revenues increased by 5.9% compared to the previous year.

Takeda has announced initiatives as part of a multi-year programme greenlit by the pharma’s board of directors as it battles the fallout from a loss of patent protection for major revenue-generating drugs.

One of the main focal points of the programme will be a pivot to data, digital and technology (DD&T). Takeda said that alongside workforce streamlining and R&D prioritisation, it will invest in DD&T to “increase productivity and efficiency across the organisation”.

No timings on the specific actions within the restructuring plan have yet been announced by the company.

Regarding its workforce, a Takeda spokesperson said in an email to Pharmaceutical Technology that “difficult choices will be required and some employees will be impacted as a result”. The company did not share a specific number, adding that the workforce changes will be “phased according to unique business needs and country requirements”.

Takeda shared progress in an earnings call from six late-stage programmes that it says have the potential to generate significant value. These programs involve therapies to treat rare blood disorders, psoriasis and neurological disorders, amongst others.

Generics competition impact profits

After 16 years on the market, Takeda lost exclusivity for its attention-deficit/hyperactivity disorder (ADHD) medication Vyvanse (lisdexamfetamine) in mid-2023. Sales totalled $2.7bn for FY 2023, with Takeda expecting a further drop of 47% in sales for FY 2024.

Vyvanse saw peak global sales in 2022 – totalling $3.39bn, according to GlobalData’s Pharma Intelligence Centre.

GlobalData is the parent company of Pharmaceutical Technology.

Takeda also lost patent protection on its blood pressure drug Azilva (azilsartan) in Japan last year. The drop off in sales from generic competition is expected to be largely offset by products such as Entyvio (vedolizumab), according to Takeda. The ulcerative colitis and Crohn’s disease treatment is expected to generate $964m in FY 2024, as per Takeda’s product forecasts.

Takeda anticipates flat to slightly declining core revenue for FY2024 with a reported operating profit of $225m.

Takeda’s chief financial officer Milano Furuta said: “With no further significant loss of exclusivity impact expected from FY 2025 until the early 2030s, we remain focused on returning to sustainable revenue and profit growth from FY 2025 onwards and are confident in our long-term growth trajectory.”