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Takeda Announces Strategic Measures to Achieve Efficiencies for Long-Term Growth


News provided by

Takeda Pharmaceutical Company Limited

Jan 18, 2012, 04:00 ET

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OSAKA, Japan, Jan. 18, 2012 /CNW/ - Takeda Pharmaceutical Company Limited ("Takeda", TSE: 4502) announced today strategic measures to better align its global workforce and consolidate site operations in order to integrate legacy Nycomed operations, strengthen its presence in more than 70 countries, adapt to changing market conditions and maintain a focus on growth through innovation and culture, as outlined in its 2011-2013 Mid-Range Plan (MRP).

The measures support both the execution of the company's strategy and the integration targets announced last year. They would also bring further efficiencies to the organization to sustain medium and long-term growth targets starting in fiscal 2015. The company will align Nycomed's former operation structures and processes with the Takeda global headquarters in Japan and the newly defined organizations of the Chief Commercial Officer - which is headquartered in Zurich, Switzerland - and Chief Medical & Scientific Officer - which is headquartered in Deerfield, Illinois - and its expanded affiliate network worldwide.

"The combination of Takeda and Nycomed, which we acquired on September 30, 2011, brought together Takeda's strong presence in the Japanese and U.S. markets with the legacy Nycomed business infrastructure in Europe and high-growth emerging markets," said Yasuchika Hasegawa, President & CEO, Takeda Pharmaceutical Company Limited. "While our combined operations in more than 70 countries are more complementary than overlapping, there are a number of areas where we will need to make changes to ensure efficient and flexible operations moving forward."

Takeda will secure a sustainable future by maximizing the synergies of the steady integration of Takeda and Nycomed, such as the sales expansion of Takeda's product pipeline utilizing Nycomed's strong sales platforms in Europe and emerging countries.

To meet the needs of the market, Takeda will also shift from a product portfolio centered on mature, high selling products to a more diverse portfolio focused on new products. The combined company has an active commercial presence in the therapeutic areas of metabolic diseases, gastroenterology, oncology, cardiovascular health, CNS diseases, inflammatory and immune disorders, respiratory diseases and pain management.

Takeda also plans to consolidate its R&D sites to ensure ongoing support for all marketed products and support development and global registration of new products throughout the combined footprint. Takeda will invest strongly in R&D focused on core therapeutic areas, while effectively deploying both internal and external resources to create innovative drugs and transform treatment paradigms. The integrated R&D organization aims to support Takeda's global vision of bringing innovative products to address patients' needs by maximizing efficiency, driving standardization, optimizing resource utilization and driving productivity.

To meet its goals, Takeda plans the consolidation of a number of sites and functions, including the potential merger or liquidation of subsidiaries mainly in Europe, and a reduction of workforce in the United States, primarily within Takeda Pharmaceuticals North America. The necessary cost for this plan is estimated approximately Yen 70 billion in total during fiscal 2011 - 2015. During this period, Takeda will achieve cost synergies of approximately Yen 200 billion. The cost synergy in Europe estimated in fiscal 2014 is now Yen 40 billion which is 10 billion greater than the original forecast announced in May 2011. Takeda plans a reduction of the Takeda global workforce by approximately 2,800 (2,100 mainly in Europe and 700 in the U.S.) positions by the end of fiscal 2015 across the functions of R&D, commercial, operations and G&A.

Employees affected by the measures will be offered appropriate guidance and support in accordance with Takeda's corporate values and applicable local practices, policies and requirements.

The financial impact of this plan within fiscal 2011 ending March 2012 is estimated at Yen 35 billion downward in income, and the revised forecast of Takeda's consolidated financial statements, including these strategic measures and other factors, will be disclosed upon fiscal 2011 3Q earnings release announcement scheduled on the 1st February 2012. The updates for progress of consolidation of sites and functions will be announced in an appropriate and timely manner.

These strategic measures and plans announced today are subject to appropriate information and consultation processes with affected employees and their representatives in accordance with applicable national laws on a country by country basis, which commence today.

About Takeda

Located in Osaka, Japan, Takeda is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global leaders of the industry, Takeda is committed to strive towards better health for patients worldwide through leading innovation in medicine. Additional information about Takeda is available through its corporate website, http://www.takeda.com.

Takeda's Forward-looking statements

This press release contains forward-looking statements. Forward-looking statements include statements regarding Takeda's plans, outlook, strategies, results for the future, and other statements that are not descriptions of historical facts. Forward-looking statements may be identified by the use of forward-looking words such as "may," "believe," "will," "expect," "project," "estimate," "should," "anticipate," "plan," "assume," "continue," "seek," "pro forma," "potential," "target," "forecast," "guidance," "outlook" or "intend" or other similar words or expressions of the negative thereof. Forward-looking statements are based on estimates and assumptions made by management that are believed to be reasonable, though they are inherently uncertain and difficult to predict. Investors are cautioned not to unduly rely on such forward-looking statements.

Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Some of these risks and uncertainties include, but are not limited to, (1) the economic circumstances surrounding Takeda's business, including general economic conditions in Japan, the United States and worldwide; (2) competitive pressures and developments; (3) applicable laws and regulations; (4) the success or failure of product development programs; (5) actions of regulatory authorities and the timing thereof; (6) changes in exchange rates; (7) claims or concerns regarding the safety or efficacy of marketed products or product candidates in development; and (8) integration activities with acquired companies.

The forward-looking statements contained in this press release speak only as of the date of this press release, and Takeda undertakes no obligation to revise or update any forward-looking statements to reflect new information, future events or circumstances after the date of the forward-looking statement. If Takeda does update or correct one or more of these statements, investors and others should not conclude that Takeda will make additional updates or corrections.

Takeda Media and Investor Contacts:
For Japanese Media and Global IR Inquiries:
Seizo Masuda
+81-3-3278-2037
[email protected]

For U.S. Media Inquiries:
Sandy Rodriguez
+1-224-554-5693
[email protected]

For Media Inquiries:
Tobias Cottmann
+41-79-2177252
[email protected]

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Takeda Pharmaceutical Company Limited

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