Struggling Takeda Pharmaceutical Co. Ltd. (TKPYY) To Raise The Bar On Research Projects, May Exit Certain Fields Of Therapy
8/5/2014 6:01:23 AM
Struggling Takeda Pharmaceutical To Raise The Bar On Research Projects, May Exit Certain Fields
August 5, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Today, Takeda Pharmaceutical’s (TKPYY) president stated that the company will focus more on research and development projects as it continues to suffer from a lack of new products, according to Reuters.
Christophe Weber, the newly appointed president, told the news source that the company is evaluating its six major fields of therapy, and it will only focus on investing on areas where it will be “best.”
"If we do research in oncology or in gastro-intestine diseases, are we good enough to be among the best?" Weber said in an interview with Reuters.
Takeda Pharmaceutical previously had a patent for Actos, an oral treatment for type II diabetes. This patent expired in 2012, and generic versions of the drug have been hurting Takeda’s overall bottom line. It’s also worth noting that Actos spurred a U.S. lawsuit for Takeda off of claims that the drug could be linked to cancer.
A Lack Of New Drugs
Takeda Pharmaceuticals has not made up for its dip in sales through the development of new drugs and products. As a result, profit margins dipped 17.6 percent between 2011 and 2012. In 2013, there was a slight recovery when margins increased 8.2 percent. However, it seems that Takeda does not see its value improving much heading into the new year.
On August 1, the Takeda forecast had slightly lower core earnings for the year to March 2015. The company reported $0.21 earnings per share for the quarter.
Weber was appointed to his position by Takeda CEO Yasuchika Hasegawa this past June. The goal of moving Weber toward the head of the staff is to make the company more global.
"I'm not looking for a revolution,” Weber told Reuters. “It's more like evolution."
However, Weber has an ample amount of work to do if he wants to push Takeda Pharmaceutical to the top of the industry. Weber went onto say that he will announce any changes he intends to make to the company before the end of the year. He has made it known that he wants Takeda to be more “agile and efficient.”
Takeda Pharmaceutical traded up 1.40 percent during mid-day trading on August 1 when it released its quarterly report, reaching $23.18. The company has a one year low of $21.64 and a one year high of $25.09 as of this date.
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