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

NycomedTakeda 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.

Most Popular Now

Pfizer and BioNTech complete submission to Europea…

Pfizer Inc. (NYSE: PFE) and BioNTech SE (Nasdaq: BNTX) today announced they have completed a submission to the European Medicines Agency (EMA) for an Omicron-adapted biva...

AstraZeneca to acquire TeneoTwo and its clinical-s…

AstraZeneca announced an agreement to acquire TeneoTwo, Inc. (TeneoTwo)i, including its Phase I clinical-stage CD19/CD3 T-cell engager, TNB-486, currently under evaluatio...

Bayer to sell men's health product Nebido™ to Grün…

Bayer and Grünenthal have entered into a definitive agreement regarding the sale of Bayer's men's health product Nebido™ (testosterone undecanoate), for a purchase price ...

Pfizer and BioNTech advance COVID-19 vaccine strat…

Pfizer Inc. (NYSE: PFE) and BioNTech SE (Nasdaq: BNTX) today announced that the companies have initiated a randomized, active-controlled, observer-blind, Phase 2 study to...

New needle-free nasal vaccine shows promise for CO…

New research shows that a needle-free mucosal bacteriophage (phage) T4-based COVID-19 vaccine is effective against SARS-CoV-2 infection. The findings were published in mB...

Demonstration of a potent, universal coronavirus m…

The SARS-CoV-2 that causes COVID-19 has killed 6.3 million people worldwide since 2019, painfully highlighting the vulnerability of humanity to novel coronaviruses. Re...

Disparities in United States COVID-19 vaccine dist…

When reports showed COVID-19 vaccination rates were lower among racial/ethnic minority groups, most discussions focused on mistrust and misinformation among these populat...

SARS-CoV-2 hijacks nanotubes between neurons to in…

COVID-19 often leads to neurological symptoms, such as a loss of taste or smell, or cognitive impairments (including memory loss and concentration difficulties), both dur...

Anti-inflammatory compound shows potential in trea…

An anti-inflammatory compound may have the potential to treat systemic inflammation and brain injury in patients with severe COVID-19 and significantly reduce their chanc...

GSK signs agreement to support pandemic preparedne…

GSK plc (LSE/NYSE: GSK) announced it had signed a framework contract with the European Commission's (EC) Health Emergency Preparedness and Response Authority (HERA) for t...

Vaccine-induced immune response to omicron wanes s…

Although COVID-19 booster vaccinations in adults elicit high levels of neutralizing antibodies against the Omicron variant of SARS-CoV-2, antibody levels decrease substan...

Scientists develop new biomimetic formulation for …

Glioblastoma multiforme (GBM) is an aggressive brain cancer with a poor prognosis and few treatment options. New and effective approaches for GBM treatment are therefore ...