Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — Investor Day (March 2021)
44 slides from Takeda Pharmaceutical's investor day presentation, Mar 11, 2021
Slide 1: Driving Sustainable Growth Through Investments in Innovation and Patient Access
DRIVING SUSTAINABLE GROWTH THROUGH INVESTMENTS IN INNOVATION AND PATIENT ACCESS GROWTH AND EMERGING MARKETS (GEM) INVESTOR DAY March 11, 2021
Slide 2: Important Notice
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 presentation (i
Slide 3: Growth and Emerging Markets (GEM) Investor Day
GROWTH AND EMERGING MARKETS (GEM) INVESTOR DAY Ricardo Marek Costa Saroukos President, Chief Financial Officer Growth & Emerging Markets 3 |
Slide 4: Agenda
AGENDA TIME (EST) TIME (JST) AGENDA Introduction 06:30 – 06:40 20:30 – 20:40 Costa Saroukos, Chief Financial Officer (CFO) of Takeda Pharmaceutical Company Limited Growth and Emerging Markets: Driving sustainable investments in innovation-led 06:40 – 07:40 20:40 – 21:40 growth & patient access Ricar
Slide 5: A Global Top 10 Values-Based, R&D-Driven Biopharma Company
A GLOBAL TOP 10 VALUES-BASED, R&D-DRIVEN BIOPHARMA COMPANY DELIVERING LONG-TERM VALUE TO PATIENTS, SOCIETY & SHAREHOLDERS • Patient-centric, values-based company committed to purpose-led sustainability • Balanced geographic footprint with scale to be competitive in key markets • 14 global brands and
Slide 6: GEM Business Unit: Strategy, Leadership & Growth
GEM Business Unit: Strategy, Leadership & Growth
Slide 7: GEM BU's Globally Aligned Strategy to Deliver Sustainable Revenue Growth and Patient Access
GEM BU’s GLOBALLY ALIGNED STRATEGY TO DELIVER SUSTAINABLE REVENUE GROWTH AND PATIENT ACCESS TO MEDICINES GEM PORTFOLIO ‘Access First’ ‘Fast track’ innovation Sustainable Ensure continued patient Drive investment focus Prioritize scalable, sustainable access to Takeda innovations, toward ‘fast tracki
Slide 8: GEM BU's Portfolio Transformation Aligned With Takeda's Global Innovation Focus
GEM BU’s PORTFOLIO TRANSFORMATION IS FULLY ALIGNED WITH TAKEDA’S GLOBAL INNOVATION FOCUS Capturing Innovation Opportunity Accelerating Growth Next 10 Years & Patient Impact Maximize Global Brands & Innovation Focus Today Wave 1 & 2 opportunities CORE OPERATING PROFIT MARGIN Non-core divestments sign
Slide 9: GEM Business Unit: Serving ~85% of the World's Population
GEM BUSINESS UNIT: SERVING A VAST GEOGRAPHY THAT INCLUDES ~85% OF THE WORLD’S POPULATION Growth & Emerging Markets Business Unit 6 SINGAPORE 80+ GEOGRAPHIC AREAS HEADQUARTERS COUNTRIES ~6.5 Billion ~6,500 8 15 EMPLOYEES MANUFACTURING SITES TIMEZONES PEOPLE 9 | SOURCE: Population data from Internatio
Slide 10: A Diverse & Highly Experienced GEM Executive Team
A DIVERSE & HIGHLY EXPERIENCED GEM EXECUTIVE TEAM: FULLY EQUIPPED TO NAVIGATE COMPLEXITY AND DELIVER STRONG BUSINESS PERFORMANCE • Led Region’s business transformation; greater alignment with Takeda’s highly innovative Ricardo Marek portfolio across its five key business areas Head, GEM BU Singapore
Slide 11: GEM Business Unit Has the Right Capabilities to Adapt to Diverse Environments
GEM BUSINES UNIT HAS THE RIGHT CAPABILITIES TO ADAPT TO DIVERSE ENVIRONMENTS AND DELIVER ON STRONG BUSINESS PERFORMANCE WITH OUR PORTFOLIO REGULATORY MEDICAL MARKET LAUNCH & AFFAIRS AFFAIRS ACCESS COMMERCIALISATION ~150 >150 ~90 Product registrations in key GEM medical events Commercial access mecha
Slide 12: GEM Leadership Delivered ~US$2BN in Divestments of Non-Core Assets
GEM LEADERSHIP DELIVERED ~US$2BN IN DIVESTMENTS OF NON-CORE ASSETS SINCE SHIRE ACQUISITION TO ACCELERATE TAKEDA’S SHIFT TOWARDS HIGH INNOVATION TREATMENTS Revenue aligned with 5 Key Business Areas Journey Significant shift in our organization towards innovation focus and growth 54% ~95% 25% FY 2014
Slide 13: GEM Portfolio: Strong Foundations in Key Business Areas With Global Brands
GEM PORTFOLIO: STRONG FOUNDATIONS IN 5 KEY BUSINESS AREAS WITH GLOBAL BRANDS DELIVERING STRONG YTD UNDERLYING REVENUE GROWTH OF 18% (YTD Dec Q3 FY20) % Revenue contribution to GEM within 5 Key Business Areas FY191 5 Key Others Business 100% NEURO- Areas PLASMA-DERIVED THERAPIES RARE DISEASES GASTROE
Slide 14: Case Study: Entyvio Brazil
CASE STUDY: ENTYVIO BRAZIL - HIGH INNOVATION SUCCESSFULLY FULFILLING UNMET PATIENT NEED AND DRIVING STRONG REVENUE GROWTH LAUNCH DATE: MAY 2016 ENVIRONMENT PATIENTS • Biologic reimbursement in Public & Private Market No. of patients on treatment • Innovation favored in private market ~2,600 ~1,500 1
Slide 15: GEM: An Environment for Significant Growth Opportunities
GEM: An Environment for Significant Growth Opportunities
Slide 16: Strong Opportunities for Growth Driven by Significant Unmet Patient Need
STRONG OPPORTUNITIES FOR GROWTH DRIVEN BY SIGNIFICANT UNMET PATIENT NEED ACROSS TAKEDA’S KEY BUSINESS AREAS Examples GASTROENTEROLOGY RARE DISEASES ONCOLOGY Biologic penetration usage per Diagnosis Rates in Anaplastic lymphoma kinase 1,000 capita Hereditary Angioedema (HAE) (ALK) testing rates 0.02
Slide 17: Emerging Markets' Dynamic Macro-Economic Environments Offer Long-Term Growth
EMERGING MARKET’S DYNAMIC MACRO-ECONOMIC ENVIRONMENTS HAVE ALSO OFFERED LONG-TERM GROWTH OPPORTUNITIES Political Index1 FX Rate Fluctuation2 GDP3 (Current USD, Trillion USD) 2000 2010 2015 2019 140 38 Algeria Emerging Devaluated vs USD Argentina 36 Markets Australia Emerging 130 34 Brazil Markets 32
Slide 18: Strong, Continued Growth in Healthcare Expenditure
STRONG, CONTINUED GROWTH IN HEALTHCARE EXPENDITURE HAS ALSO PRESENTED EXCELLENT GROWTH OPPORTUNITIES FOR THE REGION Total healthcare expenditure (current Prices, Trillion USD) 2000-2018 CAGR (%) Between 2010-2018, Emerging markets represented 3.5 US ~40% ~6% Above total average (~6%) Below total ave
Slide 19: Leading Pharmaceutical Markets in GEM Represent Attractive Growth Opportunities
LEADING PHARMACEUTICAL MARKETS IN GEM REPRESENT ATTRACTIVE, CURRENT AND FUTURE REVENUE GROWTH OPPORTUNITIES, AND SCALE Pharmaceutical Spend MAT Q2 2020 (USD) Top 20 countries Rank 1 2020 USA represent ~6% 2 3 4 CHINA JAPAN GERMANY 90% Pharma spend CAGR across Top 20 5 FRANCE of total Emerging Market
Slide 20: Favorable Trends in Healthcare Infrastructure Within GEM Countries
FAVORABLE TRENDS IN HEALTHCARE INFRASTRUCTURE WITHIN GEM COUNTRIES PROVIDE SUSTAINABLE OPPORTUNITIES FOR GROWTH IN THE LONG TERM Indicative analysis of top emerging markets by pharmaceutical spend 20201 Health Care Maturity KOR TWN BRA SAU GDP per capita (PPP) CHN Strong health Treatment Reimburseme
Slide 21: Takeda's GEM BU Revenue Growth Expected to Outpace the Market
TAKEDA’S GEM BU REVENUE GROWTH RATE IS EXPECTED TO OUTPACE THE MARKET AND DELIVER DOUBLE-DIGIT GROWTH Innovative Care growth in the Pharmaceutical industry within GEM key markets (Absolute Value) 2020 → 2025 Predominantly general health 5.0% focused treatments in primary care settings Potential CAGR
Slide 22: GEM's Strategic Imperatives for Future Growth
GEM’S Strategic imperatives for future growth
Slide 23: GEM Strategy: Focus on Three GEM Imperatives
GEM STRATEGY: FOCUS ON THREE GEM IMPERATIVES TO DRIVE SUSTAINABLE GROWTH AND GREATER PATIENT ACCESS TO INNOVATION 1 2 3 INVEST IN KEY SUCESSFULLY LAUNCH DRIVE SUSTAINABLE MARKETS & GLOBAL BRANDS & ACCESS PORTFOLIO PREPARE WAVE 1 TO TAKEDA GROWTH DRIVERS AND 2 LAUNCH INNOVATIVE ASSETS TREATMENTS 23 |
Slide 24: GEM Strategy: Focus on Three GEM Imperatives
GEM STRATEGY: FOCUS ON THREE GEM IMPERATIVES TO DRIVE SUSTAINABLE GROWTH AND GREATER PATIENT ACCESS TO INNOVATION 1 2 3 INVEST IN KEY SUCESSFULLY LAUNCH DRIVE SUSTAINABLE MARKETS & GLOBAL BRANDS & ACCESS PORTFOLIO PREPARE WAVE 1 TO TAKEDA GROWTH DRIVERS AND 2 LAUNCH INNOVATIVE ASSETS TREATMENTS 24 |
Slide 25: GEM's Immediate Investment Focus on Environments That Reward Innovation
GEM’S IMMEDIATE INVESTMENT FOCUS ON ENVIRONMENTS THAT REWARD INNOVATION WILL BE A CRITICAL FACTOR IN ACHIEVING REVENUE GROWTH Invest in Key Markets Portfolio Investments Market Archetype Takeda Brands in 5 Key Business Areas Core ~26 >70% Of Emerging Market Number of Markets population Focus Access
Slide 26: Strategic Investments in Key Markets Targeted to Maximize Value
STRATEGIC INVESTMENTS IN KEY MARKETS TARGETED TO MAXIMIZE VALUE AND CAPTURE GROWTH OPPORTUNITIES IN KEY THERAPY AREAS EXAMPLES… China Brazil India Strong government Key Therapy Area Market 2nd largest commitment to improve Top 10 aligned with Takeda Average 7% Real GDP Pharma market pharmaceutical p
Slide 27: Takeda China Focus: Transforming Takeda China Through Investments
TAKEDA CHINA FOCUS: TRANSFORMING TAKEDA CHINA THROUGH INVESTMENTS TO DRIVE SUSTAINABLE GROWTH NOW AND IN THE FUTURE Takeda China Takeda China aspires in 1.4 Billion Population in 2020 the long term: 2nd largest in the world 12 ~3,000 Office sites in China Takeda Employees in China expected by 2023 1
Slide 28: Takeda China Is an Important Driver of Revenue Growth
TAKEDA CHINA IS AN IMPORTANT DRIVER OF REVENUE GROWTH, AND AN INVESTMENT PRIORITY AS THE LOCAL ENVIRONMENT CONTINUES TO REWARD INNOVATION Acceleration of Registrations Favorable Reimbursement Environment ~140 new approvals since 2016; predominantly by MNCs Regular updates to NRDL and budget realloca
Slide 29: Ninlaro China: One of GEM's Most Successful Launches
NINLARO CHINA ONE OF GEM’S MOST SUCCESSFUL LAUNCHES TO DATE: STRONG REVENUE GROWTH, WIDE PATIENT ACCESS AND RAPID MARKET UPTAKE Key Success Factors 2 years uptake post launch SPEED TO MARKET (Monthly cumulative pack volume, actual, to-market) • Accelerated NDA approval via priority review Brand (Onl
Slide 30: GEM Strategy: Focus on Three GEM Imperatives
GEM STRATEGY: FOCUS ON THREE GEM IMPERATIVES TO DRIVE SUSTAINABLE GROWTH AND GREATER PATIENT ACCESS TO INNOVATION 1 2 3 SUCESSFULLY LAUNCH DRIVE SUSTAINABLE GLOBAL BRANDS & ACCESS PREPARE WAVE 1 TO TAKEDA AND 2 LAUNCH INNOVATIVE ASSETS TREATMENTS 30 |
Slide 31: Investment Focus on >70 Potential Key Brand Launches Across GEM Countries
INVESTMENT FOCUS ON >70 POTENTIAL KEY BRAND LAUNCHES ACROSS KEY GEM COUNTRIES: A SIGNIFICANT REVENUE GROWTH DRIVER Rare Disease PDT Immunology 36+ 15+ Potential Potential LAUNCHES LAUNCHES By 2025: Oncology Gastroenterology 10+ 10+ Potential Potential LAUNCHES LAUNCHES Number of countries to launch
Slide 32: Takeda Pipeline: Momentum in Our Dynamic Pipeline
TAKEDA PIPELINE: MOMENTUM IN OUR DYNAMIC PIPELINE BASED ON EMERGING DATA WAVE 11 WAVE 22 CLINICAL-STAGE NMEs TARGET APPROVAL FY20 FY21 FY22 FY23 FY24 FY25/26 FY27 AND BEYOND •• mobocertinib • pevonedistat mobocertinib pevonedistat TAK-981 TAK-605 TAK-252 TAK-102 2L NSCLC with EGFR HR-MDS 1L NSCLC wi
Slide 33: Takeda's Innovative Wave 1 Pipeline for Patients in GEM
TAKEDA'S INNOVATIVE WAVE 1 PIPELINE IS BEING DEVELOPED TO DELIVER LIFE-TRANSFORMING TREATMENTS AND VACCINES TO PATIENTS IN GEM Therapeutic Areas 2021 2026+ TAK-003 VACCINES Dengue Vaccine mobocertinib pevonedistat TAK-007 (TAK-788) (TAK-924) CD19+ hematologic ONCOLOGY High Risk Myelodysplastic malig
Slide 34: Takeda's Dengue Vaccine Candidate TAK-003 Growth Driver for GEM
TAKEDA'S DENGUE VACCINE CANDIDATE TAK-003 HAS POTENTIAL TO BE A SIGNIFICANT GROWTH DRIVER FOR GEM TAK-003 Live-attenuated tetravalent vaccine for the prevention of dengue • Dengue is estimated to cause 390 million infections/year1 • Phase 3 trial met primary endpoint with 80.2% overall vaccine effic
Slide 35: TAK-003 Expected Milestones
TAKEDA'S DENGUE VACCINE CANDIDATE TAK-003 EXPECTED MILESTONES GEM Countries • 1st Wave: Indonesia, Malaysia, Thailand, Colombia, Brazil, Mexico, Singapore, Sri Lanka, Argentina • 2nd Wave: Ecuador, Guatemala, Paraguay, Peru, Costa Rica, El Salvador, Panama, Nicaragua, D. Republic, Philippines, Hong
Slide 36: GEM Strategy: Focus on Three GEM Imperatives
GEM STRATEGY: FOCUS ON THREE GEM IMPERATIVES TO DRIVE SUSTAINABLE GROWTH AND GREATER PATIENT ACCESS TO INNOVATION 1 2 3 INVEST IN KEY SUCESSFULLY LAUNCH DRIVE SUSTAINABLE MARKETS & GLOBAL BRANDS & ACCESS PORTFOLIO PREPARE WAVE 1 TO TAKEDA GROWTH DRIVERS AND 2 LAUNCH INNOVATIVE ASSETS TREATMENTS 36 |
Slide 37: Takeda's Purpose and Values Guide GEM's "Access First" Mindset
TAKEDA’S PURPOSE AND VALUES GUIDE GEM’S “ACCESS FIRST” MINDSET TO ENSURE BROAD PATIENT ACCESS TO SOME OF OUR HIGHLY INNOVATIVE MEDICINES Patient Trust Reputation Business 1 2 3 4 GEM access holistic approach Takeda Achieves Industry-Leading Takeda Patient Assistance Programs (PAPs) Policy Shaping Po
Slide 38: GEM BU to Be a Major Contributor of Takeda's Global Revenue Growth
GEM BU TO BE A MAJOR CONTRIBUTOR OF TAKEDA’S GLOBAL REVENUE GROWTH: EXPECTATIONS ARE FOR DOUBLE-DIGIT REVENUE GROWTH OVER THE NEXT 10 YEARS Aligned GEM BU Strategy Goal: above market, DOUBLE-DIGIT REVENUE Takeda Strategy GROWTH1 Deliver: JPY 1 Trillion (~$9 Billion) Revenue in the region by FY301, d
Slide 39: Q&A Session
Q&A SESSION
Slide 40: Growth and Emerging Markets (GEM) Investor Day
GROWTH AND EMERGING MARKETS (GEM) INVESTOR DAY Ricardo Marek Costa Saroukos President, GEM BU Chief Financial Officer Taran Bae Choo Beng Goh Dave Pearce Sean Shan Senior Director Head, Medical Affairs, Head, Head, Takeda China R&D Investor Relations Asia Pacific, GEM BU Portfolio Management GEM BU
Slide 41: Appendix
Appendix ltd
Slide 42: Takeda's Disclosure Metrics
TAKEDA’S DISCLOSURE METRICS Reported Core Underlying Financial results recorded and prepared From Reported Results, adjust for: From Core Results, further adjust for: in accordance with International 1. Amortization and impairment 1. Impact of foreign exchange Financial Reporting Standards (IFRS) ex
Slide 43: Definition of Core and Underlying Growth
DEFINITION OF CORE AND UNDERLYING GROWTH Takeda uses the concept of Underlying Growth for internal planning and performance Core Operating Profit represents net profit adjusted to exclude income tax expenses, evaluation purposes. the share of profit or loss of investments accounted for using the equ
Slide 44: 2019 Takeda Takeda Pharmaceutical Pharmaceutical Company
©©2021 2019Takeda TakedaPharmaceutical PharmaceuticalCompany CompanyLimited. Limited.All Allrights rightsreserved reserved
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