Takeda's 1H Sales Increase 13%, Reaffirms FY21 Outlook, Announces Share Buyback

Takeda Pharmaceutical Company Limited TAK reported 1H FY21 sales of ¥1,794.4 billion, +12.8%. Underlying core revenue increased +6.8% Y/Y, driven by 14 global brands.
Takeda's 14 global brands, with overall revenue of ¥692.2 billion, posted underlying revenue growth of +11.4%.
Gastrointestinal business sales increased 8% to ¥429.1 billion, driven by gut-selective Entyvio.
Rare Diseases business posted sales of ¥300.1 billion, down 2% due to competition and HAE growth being impacted by phasing dynamics.
Plasma Derived Therapy (PDT) Immunology revenues were up 11% to ¥238.0 billion, driven by Immunoglobulin and Albumin/Flexbumin.
Oncology increased 8% to ¥233.7 billion.
Neuroscience sales were up 9% to ¥233.7 billion, driven by a strong rebound of Vyvanse following the impact of COVID-19 in the prior year.
Core operating profit decreased -4.3% due to divestitures and increased R&D investment. Takeda says it is on track towards a full-year forecast of ¥930.0 billion.
Guidance: Takeda reaffirmed FY21 sales of ¥3,370 billion, with core EPS of ¥394 and free cash flow of ¥600 billion - ¥700 billion.
Share Buyback: Additionally, Takeda announced a buyback of ¥100 billion with the purchase of 35 million shares, or 2.23% of shares outstanding.
"At our current share price, we see an opportunity to buy back our shares at a substantial discount to what we perceive is their underlying value. The buyback will not impact the Company's plans to reduce its debt or ability to hit other targets by the end of fiscal 2023," said Costa Saroukos, CFO.
Price Action: TAK shares were up 0.14% at $13.84 during the premarket session on the last check Thursday.

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