J.P. Morgan Healthcare Conference: Why we’re positioned for growth over the next decade
January 13, 2022
By Christophe Weber
The start of a new year always brings hope and optimism about the opportunities ahead. That’s certainly true for Takeda as we continue on our journey as a top-tier global biopharmaceutical company poised for long-term growth and sustainable value.
At the 40th Annual J.P. Morgan Healthcare Conference held virtually this week, my colleagues and I had the opportunity to provide an in-depth view of how our strategy for growth will continue to deliver on our commitments to patients, shareholders and society.
Over the past several years, Takeda has delivered steady growth throughout our transformation, largely through our 14 global brands. However, when we began this journey back in 2014, we didn’t have any global brands or the innovative pipeline to fuel long-term success.
Today, our scale and strong portfolio of marketed brands, built organically and through strategic acquisitions, will continue to fuel Takeda’s growth throughout this decade and ensure ongoing investment in our science. In fact, we’re poised for continued mid- and long-term growth with the potential to deliver incremental revenue growth of approximately JPY 500 billion (~$4.5B) by FY20251 with additional upside through 2030. Importantly, this will also enable us to weather any storms, whether it be anticipated loss of patent exclusivity or pipeline setbacks.
Our highly diverse pipeline of approximately 40 clinical stage medicines – 90% of which didn’t exist just six years ago – will help to ensure we continue to grow into the future. In fact, our two recent U.S. Food and Drug Administration approvals of new therapies underscore pivotal progress in our pipeline.
Looking ahead, our pipeline assets expected to be in pivotal trials by the end of FY2022 have more than one trillion yen (~$10 billion dollars) in non-PTRS adjusted, approximately JPY 500 billion (~5B) in PTRS adjusted, aggregate peak sales potential2,3. And, we’re working hard to make many of these potential medicines available for patients before 2028. Further, we have several high-potential therapies in earlier stage development that are expected to have proof-of-concept readouts in the next few years, several of which have significant peak sales potential. Importantly, one-third of our late-stage pipeline has breakthrough therapy designation, meaning we’re finding new treatments or even potential cures – a true testament to our innovation and focus on targeting entirely new categories and modalities.
Some of the pipeline programs we’re excited about include:
We’ve put our core strengths and capabilities as a top biopharmaceutical company to work to help solve key societal challenges – something we call purpose-led sustainability – that will deliver not just into the next quarter, but over the long-term.
The J.P. Morgan Healthcare Conference at the start of the new year provides a forum for us to reinforce our need to look forward. And, we are more confident than ever that the strength of our brands, combined with the potential of our pipeline, will enable us to do more for our patients, and all of our stakeholders. Importantly, though, we are at this successful juncture in Takeda’s long history because the company and our people have always been values-driven and continue to put patient needs first.
1 Baseline for incremental revenue growth is FY2020 reported revenue, adjusted for divested assets. All revenue numbers are adjusted for development and regulatory risk. Actual future net sales achieved by our commercialized products and pipelines will be different, perhaps materially so, as there is a range of possible outcomes from clinical development, driven by a number of variables, including safety, efficacy and product labelling. In addition, if a product is approved, the effect of commercial factors including the patient population, the competitive environment, pricing and reimbursement is also uncertain.
2 Not adjusted for Probability of Technical and Regulatory Success (PTRS) and is not a “forecast” or “target” figure. PTRS applies to the probability that a given clinical trial/study will be successful based on pre-defined endpoints, feasibility and other factors and regulatory bodies will grant approval. Actual future net sales achieved by our commercialized products and pipelines will be different, perhaps materially so, as there is a range of possible outcomes from clinical development, driven by a number of variables, including safety, efficacy and product labelling. In addition, if a product is approved, the effect of commercial factors including the patient population, the competitive environment, pricing and reimbursement is also uncertain.
3 Includes revenue from additional indications which are pre-Proof of concept. Includes potential revenue from regions for which Takeda has yet to execute option agreements for commercialization rights.