Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — Investor Day (November 2021)
56 slides from Takeda Pharmaceutical's investor day presentation, Nov 17, 2021
Slide 1: Driving growth through end-to-end innovation
Driving growth through end-to-end innovation 17 November 2021 ET 18 November 2021 JST
Slide 2: Disclaimers
Disclaimers IMPORTANT NOTICE For the purposes of this notice, “presentation” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited (“Takeda”) regarding this presentation. This pre
Slide 3: Welcome & Introduction
Welcome & Introduction Julie Kim President, Plasma-Derived Therapies 2
Slide 4: Our dedicated business unit is transforming the lives of patients
Our dedicated business unit is transforming the lives of patients Set ambitious long-term strategy to accelerate growth Committed to transform plasma operations and capabilities Set goal to increase plasma donations and capacity by >65% by end of FY2023* 3 *Versus FY2018 baseline
Slide 5: Our dedicated business unit is transforming the lives of patients
Our dedicated business unit is transforming the lives of patients Executing successfully against long-term strategy • Grew IG and total PDT portfolio underlying revenue* by 16% and 6%, respectively, in FY2020 Accelerating growth through transformation: • Enhanced donor experience through data, digit
Slide 6: While the plasma market may be unique, there are significant opportunities for growth
While the plasma market may be unique, there are significant opportunities for growth IMPORTANT NUANCES Supply dependent Capital intensive Plasma Historically low on donation and complex economics innovation production process 1 2 3 4 5 …AND COMPELLING Products have Indication and Products not Proba
Slide 7: Headwinds have intensified… and created significant opportunities to accelerate change
Headwinds have intensified… and created significant opportunities to accelerate change Significant declines in donation; supply uncertainty Increase in costs to mitigate for declines Exposed systemic vulnerabilities Potential disruptive therapies (e.g., anti-FcRns) Increased public attention on plas
Slide 8: Long-term market growth potential remains strong despite potential impact of investigational treatments
Long-term market growth potential remains strong despite potential impact of investigational treatments in select indications Worldwide demand for plasma-derived Approximate Global IG Use therapies is expected to continue to increase each year by Indication & Specialty (2019) CIDP RAID 30 All Others
Slide 9: Long-term market growth potential remains strong despite potential impact of investigational treatments
Long-term market growth potential remains strong despite potential impact of investigational treatments in select indications Worldwide demand for plasma-derived No impact to PID or SID due to mechanism of action therapies is expected to continue to increase each year CIDP RAID 30 All Others 22.5% 3
Slide 10: Long-term market growth potential remains strong despite potential impact of investigational treatments
Long-term market growth potential remains strong despite potential impact of investigational treatments in select indications Worldwide demand for plasma-derived Potential impact is limited to specific disease areas therapies is expected to continue to increase each year accounting for < 10% of IG u
Slide 11: Long-term market growth potential remains strong despite potential impact of investigational treatments
Long-term market growth potential remains strong despite potential impact of investigational treatments in select indications Worldwide demand for plasma-derived Potential partial impact in CIDP – heterogeneity of therapies is expected to continue to increase each year disease area means IG still ha
Slide 12: Long-term market growth potential remains strong despite potential impact of investigational treatments
Long-term market growth potential remains strong despite potential impact of investigational treatments in select indications Worldwide demand for plasma-derived IG market growth is expected to outpace potential therapies is expected to continue to increase each year erosion from disruptive modaliti
Slide 13: Our performance shows we are on track to meet our goals
Our performance shows we are on track to meet our goals – even in the face of unexpected and challenging circumstances DONORS PATIENTS Business Operations Plasma Sourcing Manufacturing Portfolio & Distribution • >70 new centers since FY2018 • ~60% of CapEx investments on • Grew last liter portfolio
Slide 14: Business Strategy Through the Eyes of the Patient
Business Strategy Through the Eyes of the Patient Dana Mendenhall Head of Plasma-Derived Therapies Strategy and Marketing 13
Slide 15: Patients are at the core of our business strategy and purpose-led growth
Patients are at the core of our business strategy and purpose-led growth 14
Slide 16: Our strategy addresses the needs of patients today and in the future
Our strategy addresses the needs of patients today and in the future Optimize A Last Liter product growth existing business B First Liter product growth C Operational excellence Calculated Disruptive manufacturing/ D investments collection technologies to serve more patients New geographies and E PD
Slide 17: We are driving last liter growth with our broad and differentiated range of IG therapies
We are driving last liter growth with our broad and differentiated range of IG therapies, offering more personalized care options DIFFERENTIATOR POTENTIAL GROWTH DRIVERS • Lowest IgA content IVIG; only IG for • Launch TAK-880, second generation hypersensitivity to IgA Gammagard S/D • Foundational IV
Slide 18: We are leading the charge for changes in the plasma ecosystem
We are leading the charge for changes in the plasma ecosystem that will improve access to plasma and enable us to transform more lives Proactive industry-led Policy & regulatory change Evidence-based advocacy sustainability actions MORE PLASMA, MORE THERAPIES 17
Slide 19: Reaching More Patients through a Differentiated Donor Experience
Reaching More Patients through a Differentiated Donor Experience Hema Tallman Head of Global BioLife 18
Slide 20: BioLife is focused on excelling across the entire donation journey
BioLife is focused on excelling across the entire donation journey to meet the growing needs of patients 19
Slide 21: We are reaching more donors in more places by expanding our global footprint
We are reaching more donors in more places and helping more patients by rapidly and responsibly expanding our global footprint Meeting long-term growth demand while setting an example for the industry WA ND MT MN ME SD WI VT OR ID WY MI NY NH IA NE MA PA IL IN OH RI NV UT CO KS MO CT WV KY VA NJ CA
Slide 22: We are innovating at every stage of the donor journey
We are innovating at every stage of the donor journey to offer an exceptional and differentiated experience so more people choose to donate Awareness Donor Follow-ups Sample Plasma Unit to First Check-In Processing Phlebotomy Check-out and Management Management Appointment Retention Cloud-based insi
Slide 23: We are optimizing processes to save time and costs
We are optimizing processes to save time and costs, ultimately enabling our teams to bring therapies to patients more quickly Significant efficiency improvements across end-to-end supply chain Inventory Acceleration Routing Improvements Streamlining Processes Improvements made to move Reduced shipme
Slide 24: From as early as Q1 FY2021, we have consistently surpassed pre-pandemic donation volumes
From as early as Q1 FY2021, we have consistently surpassed pre-pandemic donation volumes SUCCESSFULLY NAVIGATED each new hurdle presented by the pandemic… and have been fast to recover FY2019 PLASMA VOLUME -11% FY2020 +15-25% FY2021 +39% +16% Expected H2 (+5% vs. FY2019) (+5% vs. FY2019) H1 FY2021 g
Slide 25: Growth in donations has come from both established and new centers
Growth in donations has come from both established and new centers DONATION VOLUME GROWTH BY DRIVER | H1 FY2021 +27% +28 new centers H1 FY2021 H1 FY2020 Donation Same Center New Center Donation Volume Growth Growth* Volume *New center growth is defined as the volume contribution associated with the
Slide 26: Our continued growth is driven by expansion, transformation and optimization
Our continued growth is driven by expansion, transformation and optimization, underpinned by a focus on people, patient and planet DATA AND DIGITAL EMPLOYEE ENGAGEMENT BUSINESS CONTINUITY APPROACH TO ATTRACT AND OPERATIONAL EFFICIENCIES AND RETENTION RETAIN DONORS WHAT • Centers remained operational
Slide 27: Transforming Manufacturing to Enable Sustainable Supply
Transforming Manufacturing to Enable Sustainable Supply Adrian Murphy Head of Plasma Operating Unit, Global Manufacturing & Supply 26
Slide 28: We are stewards of plasma from donor to patient
We are stewards of plasma from donor to patient to ensure high-quality production of safe and efficacious therapies 1 PLASMA DONATION 2 RECEIPT AND USE 3 FRACTIONATION 6 PACKAGING & DISTRIBUTION 5 FILLING 4 PURIFICATION Complex, capital-intensive process takes 7-12 months 27
Slide 29: Our world-class operations deliver consistently high-quality plasma medicines
Our world-class operations deliver consistently high-quality plasma medicines for patients globally Covington, GA 8 STRATEGIC LOCATIONS Prothya, NL Vienna, Austria plus four strategic partners, Round Lake, IL providing a robust and uninterrupted Lessines, Belgium Narita, Japan supply chain Pisa, Ita
Slide 30: We continue to grow capacity at each of our facilities
We continue to grow capacity at each of our facilities to enable more and more patients to have continuity of care Packaging & Fractionation Purification Fill & Finish Distribution Los Angeles, Round Lake, USA USA New automated filling line for Albumin for additional ~12M vials Covington, USA Tech t
Slide 31: Pulling through the full value of expansion through Factories of the Future
We‘re pulling through the full value of our expansion through our Factories of the Future program Increasing capacity > 65% Harnessing data & FY2018-FY2023 advanced analytics Continuing to increase process efficiency Increasing automation and use of robotics Reducing downtime Enhancing employee safe
Slide 32: Delivering results with a focus on sustainability
We’re delivering results with a focus on sustainability – setting new industry standards through ambitious carbon, water and waste goals • Vienna, Rieti and Pisa utilize 100% Example: Carbon reduction in action at a plasma facility renewable electricity • US sites pursuing virtual power agreement fo
Slide 33: Our resilience throughout the pandemic is driving fresh momentum
Our resilience throughout the pandemic is driving fresh momentum and new thinking towards how we can best save more lives Manufactured investigational therapy in record time while meeting all supply commitments Weathering supply chain challenges successfully Accelerating transformation and capabilit
Slide 34: Driving Innovative Care Solutions for Patients
Driving Innovative Care Solutions for Patients Kristina Allikmets Head of Plasma-Derived Therapies R&D 33
Slide 35: Hannah and Edward
HANNAH How can we make living with a chronic disease easier by integrating treatment into life more seamlessly than possible today? EDWARD Best available care is complex and may not be successful for him Could the proteins within plasma represent an opportunity to effectively treat him in ways not p
Slide 36: R&D drives innovation across the end-to-end value chain
R&D drives innovation across the end-to-end value chain DONORS PATIENTS Business Operations Plasma Sourcing Manufacturing Portfolio & Distribution Leverage technology to Improve manufacturing Identify and develop novel Develop complete care enhance the donor processes and develop new plasma protein-
Slide 37: We are developing healthcare solutions to help patients live a life that feels like their own
We are developing healthcare solutions to help patients live a life that feels like their own PLASMA-DERIVED THERAPY PDT + DEVICE + ACCESS CONNECTED CARE PLATFORM ANTITHROMBIN III HyHub AVA Highly Differentiated Innovative Devices Targeted Programs for and Evolving Portfolio of >20 Therapies to Enha
Slide 38: Our pipeline and broad portfolio of therapies brings our strategy to life
Our pipeline and broad portfolio of therapies brings our strategy to life NEAR-TERM LONG-TERM PLATFORMS TAK-771 TAK-662 TAK-662 TAK-330 TAK-330 TAK-882 HYQVIA (Halozyme) CEPROTIN CEPROTIN PROTHROMPLEX PROTHROMPLEX Inter-α Inhibitor PLASMA PROTEOMICS for BIOMARKERS MMN: EU Label Expansion: EU SCPCD:
Slide 39: Geographic and indication expansions while maximizing portfolio potential
We are committed to serving patients through geographic and indication expansions, while maximizing the potential of our broad portfolio DRIVING GROWTH THROUGH LIFE CYCLE MANAGEMENT* • Broad SID label for TAK-771 in EU (achieved Sep-2020) LAST • Completed enrollment in TAK-771 CIDP study (readout H2
Slide 40: New modalities like anti-FcRn are unlikely to displace IG therapy
New modalities like anti-FcRn are expected to enter the rare autoimmune space, but are unlikely to displace the unique benefits of IG therapy Current CIDP treatment is guided by disease course and severity given its heterogeneous nature and lack of clear markers IG therapy expected to remain a first
Slide 41: Our proteomics platform is a foundation for personalized treatment
Our proteomics platform is a foundation for personalized treatment for current and future patient populations QUANTITATIVE PROTEOMICS PLATFORM DEFINE STRATIFY Healthy vs Disease State Responder Populations With a better understanding of the physiological role of plasma proteins, these therapies can
Slide 42: Accelerating innovation through 30+ strategic collaborations
We are accelerating innovation through our network of 30+ strategic collaborations ACADEMIC TECHNOLOGICAL * COMMERCIAL PROFESSIONAL & PATIENT ORGANIZATIONS TAKEDA INTERNAL GROUPS Notes: Representative depiction; not exhaustive. *Takeda supports activities of International Society on Thrombosis and H
Slide 43: Our R&D success will unlock the full potential of plasma therapies
Our R&D success will unlock the full potential of plasma therapies for patients …WHICH CONTINUES TO BE ENABLED BY: ADVANCING PORTFOLIO Well-defined, Dedicated PDT growth-driven R&D budget INNOVATING strategy (>30% focused on new ACROSS programs by FY2023) VALUE CHAIN GROWING 165+ COLLABORATIVE Plasm
Slide 44: Creating Value for Patients and Shareholders
Creating Value for Patients and Shareholders Ramy Riad Chief Financial Officer, Plasma-Derived Therapies 43
Slide 45: We laid the foundation for growth and margin improvement over time
Working across the entire PDT value chain, we laid the foundation for growth and margin improvement over time +56% 193 +40% Through investments 124 New center growth Increase in installed and strategy execution, we across FY2018-H1 FY2021 FY18 H1 FY21 manufacturing capacity FY2018-present built the
Slide 46: This foundation fuels our underlying revenue growth across the portfolio
This foundation fuels and enables our underlying revenue growth* across the portfolio Consistent underlying growth accelerated by geographic and indication expansion PDT BU FY2020 Reported Revenue UNDERLYING GROWTH Product Family FY2018 FY2019 FY2020 17% Pro Forma Total PDT +3% +6% 5% Total IG Portf
Slide 47: Underpinning our IG growth is responsible plasma collection and inventory management
Underpinning our IG growth is responsible plasma collection and inventory management FY2019 FY2020 FY2021E** IG PORTFOLIO UNDERLYING REVENUE GROWTH* +7% +16% +5-10% PLASMA COLLECTION GROWTH + 3rd +13% -11% +15-25% Party GROWTH DRIVERS Capacity expansion, operational efficiencies, transformation Grou
Slide 48: Our strategy and innovation-driven culture will drive further financial momentum
Our strategy and innovation-driven culture will drive further financial performance momentum FY2021 performance reflective of strategy and innovation proceeding despite headwinds H1 FY2021 UNDERLYING REVENUE GROWTH* PDT BU PDT IMMUNOLOGY IG PORTFOLIO ALBUMIN PORTFOLIO +7% +11% +8% +35% 278.7B JPY 23
Slide 49: Closing
Closing Julie Kim President, Plasma-Derived Therapies 48
Slide 50: Our continued growth will be fueled by our understanding of patient needs
Our continued growth will be fueled by our deep understanding of patient needs and the plasma ecosystem Harnessing data and digital to drive value Enhancing the donor experience to attract and retain donors Expanding capacity to improve reliability of supply Optimizing our manufacturing network to m
Slide 51: Our diverse team draws on a deep knowledge of plasma
Our diverse team draws on a deep knowledge of plasma and has broad expertise and experience, grounded in Takeda values Julie Kim Charlie Alexander Kristina Allikmets Linda Coplan Rob de With Barbara Glantschnig Deborah Hibbett Head of Plasma- Business Research & Human Resources Europe and Canada Glo
Slide 52: PDT is a significant driver of Takeda's growth
The Plasma-Derived Therapies business is a significant driver of Takeda’s growth 16% of Takeda's total reported revenue in FY2020 Grounded in TAKEDA’S VALUES Working toward SHARED GOALS Better Health for People, Brighter Future for the World 51
Slide 53: Q&A
Q&A 52
Slide 54: Definition of Underlying Revenue Growth
Definition of Underlying Revenue Growth Takeda uses the concept of Underlying Revenue Growth for internal planning and performance evaluation purposes. Underlying Revenue Growth compares two periods (fiscal quarters or years) of financial results under a common basis and is used by management to ass
Slide 55: Glossary of Terms
Glossary of Terms (In Alphabetical Order) A1ATD Alpha-1 Antitrypsin Deficiency ITP Immune Thrombocytopenic Purpura BU Business Unit IVIG Intravenous Immunoglobulin CAGR Compound Annual Growth Rate Kawasaki Kawasaki Disease CapEx Capital Expenditure MG Myasthenia Gravis CIDP Chronic Inflammatory Demy
Slide 56: Driving growth through end-to-end innovation
Driving growth through end-to-end innovation 17 November 2021 ET 18 November 2021 JST
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