Takeda Pharmaceutical Faces Challenges as Shares Plummet

By Kosaku Narioka

Takeda Pharmaceutical, a prominent Japanese drugmaker, experienced a substantial drop in its shares following the release of its second-quarter financial results. The company reported a net loss primarily due to impairments on certain products, which significantly impacted its fiscal-year net-profit forecast.

At present, Takeda's shares have dipped by 7.2% to 4,033 yen, having fallen as much as 8.2% earlier during Friday morning. These figures indicate the market's response to the latest revelations from the company.

Takeda revealed on Thursday, after the closing of the market, that it recorded a net loss of Y48.0 billion ($319.2 million) for the period ending September 30. This starkly contrasts with the estimated net profit of Y70.41 billion predicted by analysts in a Quick poll and the net profit of Y61.7 billion achieved in the same period the previous year.

The Japanese drugmaker faced impairment losses for two key products: Alofisel, a stem-cell therapy designed to combat Crohn's disease, and Exkivity, a drug used to treat lung cancer. These losses were incurred following unfavorable trial outcomes, highlighting the inherent risks in the pharmaceutical industry.

Consequently, Takeda has revised its profit forecast for the fiscal year, ending in March 2024. The company now projects a 71% decrease in net profit, with figures expected to plummet to Y93.00 billion, down from the previously forecasted Y142.00 billion.

It is evident that Takeda Pharmaceutical is grappling with significant setbacks as it navigates through a challenging period. The implications of these financial difficulties are sure to reverberate throughout the industry as Takeda seeks to recover from this setback.