Takeda Pharma Maintains Outlook Even As Vyvanse Generics Hit Sales

Takeda Pharmaceutical Company Limited TAK posted a strong first-quarter performance for 2025 on Wednesday, with a net profit of 124.2 billion Japanese yen (approximately $834.08 million), reflecting a notable 30.4% year-over-year increase.

The company reported earnings per American Depositary Share (EPADS) of 52 cents, surpassing analyst expectations of 47 cents. However, in yen terms, earnings per share (EPS) experienced a 14.1% decline, or a 10% decrease when adjusted for constant currency, reaching 151 yen.

Total sales for the quarter amounted to $7.66 billion (1.11 trillion yen), exceeding consensus estimates of $7.53 billion. Despite this positive top-line performance, Takeda faced challenges on the bottom line, with core net profit dropping by 14.4% (or 10.3% at constant currency) to 237 billion yen.

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The key factor behind this decline was the significant erosion of revenue from Vyvanse, its attention-deficit hyperactivity disorder (ADHD) treatment, following the introduction of generic competition.

This decline was anticipated by the company and was a major contributor to both the revenue drop and a reduction in core operating profit.

U.S. sales of Vyvanse fell 53.8% at constant exchange rates, dropping to 57.9 billion yen. The generics’ market entry led to an overall sales decline of 46.9% for the drug during the quarter.

On a more positive note, Takeda’s portfolio of rare disease treatments showed resilience. Sales of Takhzyro, a treatment for hereditary angioedema, rose by 3.7% to 55.1 billion yen. Immunoglobulin sales also saw growth, increasing 2% at constant currency to 194 billion yen, while Albumin sales surged 16.2%, reaching 32.2 billion yen.

In the vaccine segment, Takeda’s Qdenga dengue vaccine experienced a 4.8% decline in sales at constant currency, amounting to 8.8 billion yen. However, the oncology division performed solidly, with Adcetris sales climbing 13.2% to 37.2 billion yen, while Fruzaqla, a novel therapy for certain cancers, saw a more modest growth of 8.9%, reaching 12.3 billion yen.

Takeda’s operating profit for the quarter rose 11% to 184.6 billion yen, while core operating profit dropped 15.8% (down 11.9% on a constant currency basis) to 321.8 billion yen. This decrease was primarily due to lower year-over-year impairment and restructuring expenses.

Milano Furuta, Takeda’s CFO, commented on the results, noting, “The impact of Vyvanse generic erosion on Takeda’s FY2025 Q1 results was very significant, but consistent with our expectations, and there is no change to our full-year outlook announced in May.”

Outlook

Takeda reaffirms its fiscal 2025 guidance, with core revenue of 4.53 trillion yen and core operating profit broadly flat at 1.14 trillion yen, and core earnings of 485 yen.

Price Action: TAK stock is trading lower by 4.99% to $13.61 at last check Wednesday.

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