Takeda Pharmaceutical Co. Ltd. to Cut 1900 Jobs, Mainly in US
Published: May 12, 2010
Under its 2006-2010 Mid-Range Plan, Takeda had made progress towards becoming a world-class pharmaceutical company. The Company achieved this by strengthening its oncology pipelines with the acquisition of Millennium Pharmaceuticals, unifying its U.S. sales network through the division of TAP 1) and its subsequent integration with TPNA 2), and enhancing its global governance structure with the establishment of position of leading International Operations and also the ones as Chief Scientific Officer and Chief Administrative Officer.
However, the business environment for the pharmaceutical industry is changing dramatically, with the pharmaceutical industry as a whole facing barriers to technological innovation that have halted progress in breakthrough novels drugs, stricter approval processes for new drugs in advanced nations, and radical upheaval in healthcare systems. Takeda has also experienced halted development in some pipelines and delays in obtaining drug approvals. The Company has therefore decided to respond flexibly to these changes in the business environment and ensure a sustained growth trajectory by developing and implementing a Mid-Range Plan starting in the fiscal 2010, one year ahead of schedule.
Takeda positions the period covered by the 2010-2012 Mid-Range Plan as a time of transformation, in which the Company will move forward from its past successes and grow into a new Takeda, setting a course for further development. To achieve the goals of this Mid-Range Plan, the Company has decided on a new management policy referred to as the Vision, which focuses on Company activities on the themes of Innovation, Growth, and Culture. These are the key concepts in the transformation that Takeda will engage in ensuring sustained growth in the medium- to long-term.
During its nearly 230-year history, Takeda has often encountered difficulties, which it has overcome to achieve growth by implementing its corporate philosophy of "Takeda-ism = Integrity, meaning fairness, honesty and perseverance." Takeda has committed itself to the complete execution of the new Mid-Range Plan, drawing on the combined knowledge and abilities of every employee in the Takeda Group and guided by thorough compliance on a global scale. In this way, the Company will work to realize its corporate mission of "striving towards better health for patients worldwide through leading innovation in medicine."
1) TAP : TAP Pharmaceutical Products Inc. 2) TPNA : Takeda Pharmaceuticals North America, Inc.
Financial targets for fiscal 2012 Net sales : 1,330 billion yen Research and Development expenses : 300 billion yen Operating income : 290 billion yen Net income : 200 billion yen Earnings per share (EPS) : 253 yen EPS : 294 yen
(excluding extraordinary income/loss, extraordinary factors arising from business acquisitions and similar events)
(Note 1) The financial targets for fiscal 2012 are calculated on the assumption that the entry of generic versions of Actos products in the U.S. will start in August 2012.
(Note 2) EPS (excluding extraordinary income/loss, extraordinary factors arising from business acquisitions and similar events) is calculated as: Net income for the year less: (1) extraordinary income/loss; and (2) amortization of goodwill and intangible assets arising in connection with business acquisitions and similar events; divided by the average number of outstanding shares issued during the year.
1. Vision Takeda's vision is to embody global pharmaceutical leadership through innovation, growth, and culture, guided by an unwavering commitment to significantly improve the lives of patients.
* Innovation based on bold leadership in science and medicine resulting in the discovery, development and delivery of high-quality, differentiated products focused on patient needs. * Sustainable growth in corporate value by leveraging core therapeutic areas, and an industry-leading pipeline and product portfolio. * A culture based on good corporate citizenship that empowers employees through collaboration, inclusion, trust and timely decision making.
2. Strategies for Implementing the Vision •Innovation
Ensure to launch products in the late-stage development Takeda ensures to bring new products to market from the fiscal 2010 onwards through steadily conducting clinical study of the products in the late-stage development. In addition, the Company aims to build a pipeline that is balanced across therapeutic areas, each stage of development and geographical regions through creating new drugs from its own R&D as well as actively pursuing M&A and licensing activities.
Concentrate resources into core therapeutic areas Takeda will concentrate investment of its management resources into new core therapeutic areas of "Metabolic & CV" (obesity, diabetes and atherosclerosis), "Oncology", and "Central Nervous System Diseases" (depression, schizophrenia, and Alzheimer's disease). In therapeutic areas where patient satisfaction with treatment is already high, Takeda will focus on the prevention of such diseases. In areas where medical needs remain largely unmet, Takeda will create drugs that are capable of bringing fundamental cure, in addition to drugs for symptomatic treatments.
Improve R&D productivity Takeda will increase the probability of success in clinical studies by rigorously selecting new drug candidates at the early development stage to select those with differentiable profiles for further development. Moreover, the Company will utilize its global framework centered around its new research center to further enhance alliances across regions and departments, while also making active use of external resources, to create new high quality drugs to satisfy unmet needs among patients.
Launch new drugs and maximize early their values In Japan, Takeda will maintain its position as Japan's number one pharmaceutical company (by market share) by achieving early penetration and sales expansion of a host of new products and by strengthening its cancer and central nervous system disease franchises. In the United States and Europe, Takeda will quickly diffuse new products into the market. At the same time, in line with the future product mix in these regions, the Company will establish a flexible sales and personnel structure to cover not only the primary care field but also specialized fields.
Further expand into new regions While continuing efforts to expand Takeda's presence in the large-scale markets of U.S. and Europe, the Company will also accelerate expansion into emerging markets, and other countries and regions where high market growth is expected in order to realize a globally balanced regional portfolio in terms of sales and profits. The goal is to cover about 90% of the global market by fiscal 2012.
As part of the transformation into a new Takeda, the Company will create an open and active corporate culture. To achieve this, the Company will foster a working atmosphere in which all Takeda Group employees can achieve their full potential, working with colleagues of different nationalities, cultures, genders and careers. At the same time, Takeda will step up its training programs to develop staff with a global perspective.
3. Active execution of strategic investment Takeda will make strategic investments actively and flexibly, having strictly evaluated the effect of a proposed investment. The Company will pursue all opportunities, including M&A, product acquisition, and introduction of pipelines.
4. Dividend Policy For the dividend policy during this Mid-Range Plan, Takeda plans to maintain a stable dividend and has adopted a basic policy of maintaining dividends per share at the fiscal 2009 level.
For further details, please refer to the materials on the 2010-2012 Mid-Range Plan which will be posted on the Takeda web site on May 13.