Takeda plans restructuring as profit slides

Japan's largest drugmaker Takeda Pharmaceutical (TYO: 4502) today announced a restructuring, as annual profit for the fiscal year to March 31, 2024 slid by more than half following the loss of patent protection of major sellers.

The company said it will incur restructuring costs of about 140 billion yen ($899 million) this fiscal year as part of a plan to optimize its workforce, cut costs and strengthen technology. Takeda’s stock saw a modest decrease of 1% following the earnings release, indicating a cautious market response to the financial results and future guidance.

Revenues for the year increased 5.9% to 4,264 billion yen, with operating profit down 56.4% at 214 billion yen, compared with a consensus estimate of 265.3 billion yen in an LSEG survey of 13 analysts.