OSAKA, Japan, May 15, 2015 /PRNewswire/ --
Operational guidance met
- Underlying revenue +2.8% year-over-year, in line with guidance (reported revenue growing +5.1% to 1,777.8 billion yen)
- Underlying core earnings of -2.1%, in line with guidance
Growth supported by innovative new products
- Entyvio sales in US and EU support $2bn peak sales target
- Brintellix outperforming two recent branded antidepressant launches in the US, 1 year after launch
- Contrave off to a promising start in the US
- Azilva growing strongly (80% year-over-year) in Japan
- Takecab launched in Japan in February 2015
Regional top line performance on track
- Price pressure and generic erosion in Japan, partially mitigated by successful product launches
- Very strong performance in US and Europe and Canada driven by new products
- Emerging Markets up 10% year-on-year (excluding inventory adjustment), double-digit growth in China and Russia
Efficiency gains above target
- Project Summit achieving more than half of 5-year savings target in 2 years
Exceptional items impacting bottom line
- $2.7 billion related to Actos settlement and associated costs.
- Other one-time items related to product / pipeline impairment and Japanese tax reform
Guidance: Back to profitable growth from FY2015
- Low single-digit underlying revenue growth in FY2015, with underlying core earnings growth higher than underlying revenue growth, and underlying core EPS growth higher than underlying core earnings growth
- Excluding the Actos settlement impact in FY2014, reported net profit is expected to more than double in FY2015
180 yen dividend per share for FY2015 and strives to at least maintain the 180 yen annual dividend per share after fiscal year 2015
Christophe Weber, President and Chief Executive Officer of Takeda, commented:
"FY2014 was a year of transformation for Takeda, and at the same time, a year during which we delivered our business targets.Weobtained approval for four important new treatments with Entyvio, Contrave, Takecab and Zafatek, and achieved significant pipeline milestones, including the phase 3 interim results for ixazomib. EPS was mainly impactedby the Actos settlement agreement expected to resolve the vast majority of Actos product liability lawsuits pending in the U.S., which will reduce financial uncertainties for the company and allow us to focus on developing innovative medicines for patients around the world.
Last year, I outlined my plan for the new Takeda organization, and we are steadily progressing to execute our strategic roadmap on all fronts to continue building a patient and customer centric organization with a focused world class R&D engine. Takeda's growth drivers are gastroenterology, value brands in emerging markets, and oncology along with the launch of ixazomib. Financial discipline will sustain our business momentum, and I anticipate FY2015 will be a turnaround year for Takeda as we have positioned the company forlong-term sales and profit growth."
Key figures for FY2014
FY 2013 FY 2014 Growth billion yen Underlying Revenue 1,691.7 1,777.8 +5.1% +2.8% Operating Profit 139.3 -129.3 - - Core Earnings 314.2 288.3 -8.2% -2.1% Net Profit 106.7 -145.8 - - EPS 135 yen -185 yen - - Core EPS 266 yen 225 yen -15.6% -3.7% Dividend per Share 180 yen 180 yen - -
 Core Earnings is calculated from operating profit by excluding the impact of exceptional items, such as purchase accounting, amortization and impairment loss of intangible assets, restructuring costs and litigation costs.
 Underlying performance aims at understanding the real performance of the business. Underlying Revenue and Underlying Core Earnings excludes the same as above plus product divestments and foreign exchange.
 Attributable to the owners of the company
With underlying revenue growth of 2.8% and underlying core earnings -2.1%, Takeda met its operational guidance for FY2014. Reported revenue grew by 5.1% to 1,777.8 billion yen. The booking of a $2.7 billion provision to cover the Actos settlement and estimated costs associated with remaining cases and other related litigations, along with other one-time exceptional items, impacted operating profit (-129.3 billion yen), net profit (-145.8 billion yen) and earnings per share (-185 yen).
Revenue growth was driven by new products - mainly Entyvio and Brintellix in the US, Entyvio and Adcetris in Europe, and Azilva in Japan - adding 97.2 billion yen. Performances in the US (+14.5% underlying revenue growth) and Europe and Canada (+5.4%) were very strong. Emerging Markets grew at 8.1%, with key countries China and Russia both achieving double-digit growth, while several other markets were impacted by a volatile economic environment. Excluding inventory adjustment, sales in Emerging Markets grew 10% year-on-year, in line with our mid-term ambition. In Japan, new products contributed 35.6 billion yen, a growth of 6.2%, which could not yet overcome the impact from generics and price pressure (Japan total -4.1%).
Project Summit - a company-wide strategic initiative to increase efficiency - delivered savings of 28 billion yen in FY2014, bringing the accumulated total achieved in the first two years to 62 billion yen. Thus, the company has achieved over 50% of its 5-year target of 120 billion yen in just 2 years.
Takeda is positioned for organic growth, with innovative products in the United States and Value Brands in Emerging Markets being the main growth drivers. Entyvio is expected to be a key global contributor to sales growth over the next few years, and Azilva and Takecab are among the new products in Japan that will enable Takeda to overcome increased generic penetration and price pressure and maintain a leading position. The ongoing efforts of the R&D organization will contribute in the mid- and long-term, with assets such as ixazomib for multiple myeloma that is currently in late phase 3 development with approval expected in FY2016. From FY2018 onward, Takeda expects to globally launch a range of innovative products in all its therapeutic areas and vaccines.
The new company structure, effective from April 1, 2015, reflects the new strategic growth focus, prioritizing patients' needs, clarifying accountabilities, and increasing operational efficiency. The company continues to be R&D driven, focusing on four therapeutic areas and vaccines.
The transformations in FY2014 have positioned Takeda for long-term sales and profit growth. In FY2015, Takeda sets the following guidance.
Guidance for FY2015
billion yen FY 2015 Underlying Growth Revenue 1,820.0 Low single digit Operating Profit 105.0 - Core Earnings - Higher than revenue growth Net Profit 68.0 - EPS 87 yen - Core EPS - Higher than core earnings growth Dividend per Share 180 yen -
 The exchange rate assumptions for FY2015 are 1US$=120 yen and 1 euro=130 yen.
 Attributable to the owners of the company
For more details on Takeda's FY2014 results and other financial information please visit http://www.takeda.com/investor-information/results/
SOURCE Takeda Pharmaceutical Company Limited