Takeda Pharmaceutical Company Limited (NYSE:TAK) Q3 2023 Earnings Conference Call February 1, 2024 8:00 AM ET

Company Participants

Christopher O’Reilly – Head of Investor Relations

Christophe Weber – President and Chief Executive Officer

Andy Plump – R&D President

Costa Saroukos – Chief Financial Officer

Milano Furuta – President, Takeda Japan Pharma Business Unit

Julie Kim – U.S. President

Conference Call Participants

Hidemaru Yamaguchi – Citigroup

Seiji Wakao – JPMorgan

Mike Nedelcovych – Cowen

Shinichiro Muraoka – Morgan Stanley

Hiroyuki Matsubara – Nomura

Tony Ren – Macquarie

Steve Barker – Jefferies

Christopher O’Reilly

Thank you very much for joining us for Takeda’s FY 2023 Q3 Earnings Announcement despite your busy schedule. And I’m emcee today. I’m O’Reilly, Head of IR. First of all, I would like to explain about the language. Please find the language button at the bottom of Zoom window. If you wish to listen in Japanese, please choose Japanese. If in English, please choose English. If you want to listen to the original language, please turn it off.

Before starting, I’d like to remind everyone that we’ll be discussing forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today. The factors that could cause our actual results to differ materially are discussed in our most recent Form 20-F and our other SEC filings. Please also refer to the important notice on Page 2 of the presentation regarding forward-looking statements and our non-IFRS financial measures, which will also be discussed during this call. Definitions of our non-IFRS measures and recommendations – reconciliations with the comparable IFRS financial measures are included in the appendix to the presentation. Without further ado, we would like to start the presentation today. We have President and CEO, Christophe Weber; R&D President, Andy Plump; and the Chief Financial Officer, Costa Saroukos presenting today, followed by a Q&A session.

Now let us begin. Christophe, please go ahead.

Christophe Weber

Thank you, Chris, and thank you, everyone, for joining our third quarter earnings call for fiscal year 2023. Our vision at Takeda is to discover and deliver life-transforming treatments carried by our commitment to patients, our people on the planet. This purpose-led approach is at the core of our strategy for sustained growth and long-term value creation for our stakeholders. Our performance in the third quarter of fiscal year 2023 further demonstrate our progress in executing on that strategy as we look ahead to a return to top line, profit and margin growth. Our top line continued to be driven by the strong momentum of our growth on launch product, which now represents 43% of total revenue and which grew at 2.7% year-to-date at constant exchange rate. In Q3 year-to-date, core revenue was JPY3.2 trillion with flat growth at constant exchange rate compared with the same period in the previous year. And this is despite significant loss of exclusivity impact, primarily from Vyvanse in the U.S. and Azilva in Japan.