Takeda Makes Pipeline Cuts and Faces Softer Q2 Sales Due to Generic Competition

Takeda has made significant cuts to its drug pipeline as part of a restructuring aimed at improving efficiency and profit margins, with 18 Phase 1 or Phase 2 programs cut including several mid-stage oncology candidates2.

The company's Q2 (fiscal first quarter of 2025) revenue declined by 3.7% at constant exchange rate (CER) and 8.4% at actual exchange rates, primarily due to generic competition for Vyvanse, its ADHD and binge eating medication3 4.

Core operating profit fell by 11.9% at CER and 16% at actual exchange rates, with the declines attributed mainly to loss of exclusivity for Vyvanse3 4.

Takeda incurred impairment charges from strategic pipeline decisions, pushing the company to a quarterly net loss and prompting it to cut its annual earnings guidance7 9 10.

The company is focusing future investment on late-stage assets expected to be large sellers and aims to improve its core operating profit margin by 1% to 2.5% annually from 2025 onwards2 5.

Takeda expects the impact from Vyvanse generics to moderate in future quarters, and its financial outlook remains broadly flat for FY2025 with limited future exposure to generics until the early 2030s3 5.

Restructuring actions include workforce reorganization, reduction in external spending, and efficiency initiatives; some employee roles will be impacted but the exact number remains undisclosed2.