Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — J.P. Morgan Healthcare Conference 2017
36 slides from Takeda Pharmaceutical's conference presentation, Jan 9, 2017
Slide 1: Strategic Transformation Driving Profitable Growth
Strategic Transformation Driving Profitable Growth J.P. Morgan Healthcare Conference 2017 January 9, 2017 Christophe Weber President & Chief Executive Officer
Slide 2: Important Notice
Important Notice Forward-Looking Statements This presentation contains forward-looking statements regarding Takeda’s future business, financial position and results of operations, including estimates, forecasts, targets and plans. These forward-looking statements may be identified by the use of forw
Slide 3: Important Notice: Forward-Looking Statements Regarding Tender Offer
Important Notice Forward-Looking Statements Regarding Tender Offer This presentation contains forward-looking information related to Takeda, ARIAD Pharmaceuticals, Inc. (“ARIAD”) and the proposed acquisition of ARIAD by Takeda that involves substantial risks and uncertainties that could cause actual
Slide 4: Important Notice: Additional Information Regarding Tender Offer
Important Notice Additional Information Regarding Tender Offer The tender offer described in this presentation has not yet commenced. This presentation is provided for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell any securities. At
Slide 5: Strategic transformation driving profitable growth
Strategic transformation driving profitable growth - New board of directors and enhanced governance (June 2016) VALUES - Globalizing Takeda-ism and comprehensive compliance program - Bold new Access to Medicines strategy (August 2016) - New organization and global functions (October 2014) PEOPLE - D
Slide 6: Strategic transformation driving profitable growth
Strategic transformation driving profitable growth • Executing business portfolio transformation • Clear steps to continue driving profitable growth 1 Deliver strong business performance 2 Revitalize pipeline by transforming R&D 3 Boost CE margin and unlock cash 6
Slide 7: Divestiture of Wako at an attractive price
Executing business portfolio transformation - Wako Divestiture of Wako at an attractive price Takeda to sell its 71.2% stake in Wako Pure Chemical, a reagent manufacturing subsidiary, to Fujifilm at the price of ¥198.5Bn by April 2017 • Wako revenue ¥79.4Bn in FY2015 • No change to Takeda's FY2016
Slide 8: Takeda to acquire ARIAD Pharmaceuticals, significantly enhancing global oncology portfolio
Executing business portfolio transformation – ARIAD Pharmaceuticals Takeda to acquire ARIAD Pharmaceuticals, significantly enhancing global oncology portfolio Highly strategic deal transforms global oncology portfolio and pipeline by expanding into solid tumors and reinforcing existing strength in
Slide 9: Iclusig reinforces existing strength in hematology
Executing business portfolio transformation – ARIAD Pharmaceuticals Iclusig reinforces existing strength in hematology Globally commercialized product with continued strong sales growth potential CY2015 revenue: $113M CY2016 guidance: $170-180M Marketed in U.S. for a high unmet need subpopulat
Slide 10: Brigatinib expands presence in solid tumors
Executing business portfolio transformation – ARIAD Pharmaceuticals Brigatinib expands presence in solid tumors Second generation small molecule ALK inhibitor for ALK+ NSCLC Potential best-in-class profile: maturing data show broad activity against resistance mutations, CNS penetration to addres
Slide 11: Brigatinib exhibits a pan-inhibitory preclinical profile against ALK resistance mutants
Executing business portfolio transformation – ARIAD Pharmaceuticals Brigatinib exhibits a pan-inhibitory preclinical profile against ALK resistance mutants Extracted from Cambridge DR, et al. World Conference on Lung Cancer 2016 11 ALK: anaplastic lymphoma kinase Cmax: maximum concentration qd: once
Slide 12: Brigatinib: Independent Review Committee-assessed PFS by arm
Executing business portfolio transformation – ARIAD Pharmaceuticals Brigatinib: Independent Review Committee- assessed PFS by arm Extracted from Camidge DR et al Extracted from Reckamp KL et al World Conference on Lung Cancer 2016 World Conference on Lung Cancer 2016 Indirect comparison of mPFS post
Slide 13: Oncology pipeline (as of FY2016 Q2, with ARIAD portfolio)
Executing business portfolio transformation – ARIAD Pharmaceuticals Oncology pipeline (as of FY2016 Q2, with inclusion of portfolio from acquisition of ARIAD) Phase 1 Phase 2 Phase 3 / Filed LCM AP32788 pevonedistat brigatinib ICLUSIG NAE inhibitor BCR-ABL inhibitor EGFR/HER2 inhibitor High-Risk Mye
Slide 14: Strategic deal with significant value creation for shareholders
Executing business portfolio transformation – ARIAD Pharmaceuticals Strategic deal with significant value creation for shareholders Iclusig CY2016 guidance of $170-180M, and brigatinib annual peak sales potential over $1Bn with strong IP. Takeda expects significant long-term revenue potential from
Slide 15: Transaction schedule
Executing business portfolio transformation – ARIAD Pharmaceuticals Transaction schedule Period of tender offer January to February 2017* Completion of acquisition By the end of February 2017** * The initial period of the tender offer will commence within 10 business days following execution of the
Slide 16: Deliver strong business performance
Clear steps to continue driving profitable growth 1 Deliver strong business performance 2 Revitalize pipeline by transforming R&D 3 Boost CE margin and unlock cash 16
Slide 17: Strong H1 performance ahead of expectations
1 Deliver strong business performance Strong H1 performance ahead of expectations H1 FY2016 growth vs H1 FY2015, underlying basis Core Earnings Core EPS Revenue +7.4% +12.7% +49.3% Core Margin Operating FCF Growth Drivers +15.3% (GI, Oncology, CNS, Emerging Markets) +70bps +34% Upward revision of fu
Slide 18: Entyvio on track to exceed $2Bn sales in FY2018
1 Deliver strong business performance on track to exceed $2Bn sales in FY2018 Continued robust growth and uptake driven by excellent launch execution Bio-Naïve Patients (new starts) (U.S.) Share of patients starting Entyvio among all patients Approved in 55 countries 3-months average starting thei
Slide 19: Ninlaro off to a great start in the U.S.
1 Deliver strong business performance profile supports $3Bn peak sales potential Off to a great start in the U.S., Approved in European Economic Area, Canada, Israel, Australia and Venezuela Cumulative Months of Therapy by Week (U.S.) First oral proteasome inhibitor (Treatment instance equivalents
Slide 20: Revitalize pipeline
Clear steps to continue driving profitable growth 1 Deliver strong business performance 2 Revitalize pipeline by transforming R&D 3 Boost CE margin and unlock cash 20
Slide 21: R&D transformation on track
2 Revitalize pipeline by transforming R&D R&D transformation on track Goals of transformation: Therapeutic area focus builds on strengths and seizes opportunities Embrace external innovation and ecosystem Build essential capabilities • Modality diversification, translational medicine, data sci
Slide 22: Therapeutic area focus concentrates resources
2 Revitalize pipeline by transforming R&D Therapeutic area focus concentrates resources Oncology Core Focus » High unmet patient need » Track record of recent Gastroenterology (GI) successes Central Nervous System (CNS) » Deep scientific expertise Vaccines Committed to global public health 22
Slide 23: Becoming an industry-leading partner
2 Revitalize pipeline by transforming R&D Becoming an industry-leading partner almost 50 collaborations in the past 18 months Institutional Collaboration Institutional Platform Collaboration Technology Takeda Innovation Network Innovative Pipeline Externalization Enhancement 23 All trademarks and re
Slide 24: Oncology: Momentum toward global top 10 (1/2)
2 Revitalize pipeline by transforming R&D Oncology: Momentum toward global top 10 (1/2) Takeda Global Oncology headquartered in Boston Targeted approach to become a Unique profile to become one of cornerstone in CD30+ malignancies the backbones of MM treatment Approved in 66 countries Global sub
Slide 25: Oncology: Momentum toward global top 10 (2/2)
2 Revitalize pipeline by transforming R&D Oncology: Momentum toward global top 10 (2/2) TAK-659 (Ph-1) SYK/FLT-3 dual inhibitor R/R DLBCL response by target lesion change Pipeline priorities Target lesion change (%) Treatment duration by response (days)* dose (mg) 100 Leverage protein quality cont
Slide 26: GI: Seizing opportunity to lead in GI (1/2)
2 Revitalize pipeline by transforming R&D GI: Seizing opportunity to lead in GI (1/2) Maximizing the value of our strong GI franchise Robust lifecycle program Best-in-class for continues to progress Acid Related Diseases CD mucosal healing Core product supporting No. 1 position Subcutaneous fo
Slide 27: GI: Seizing opportunity to lead in GI (2/2)
2 Revitalize pipeline by transforming R&D GI: Seizing opportunity to lead in GI (2/2) Cx601 (filed in the EU) novel stem Pipeline priorities cell platform; breakthrough treatment of complex perianal fistulas in CD Secure leadership with IBD portfolio • Licensed from TiGenix Expand position in GI
Slide 28: CNS: Delivering innovative medicines in neurology and psychiatry
2 Revitalize pipeline by transforming R&D CNS: Delivering innovative medicines in neurology and psychiatry Pipeline priorities Focus driven by high unmet patient need: • Schizophrenia (CIAS & negative symptoms) • Depression (treatment resistant depression) • Neurodegenerative diseases (dementia) B
Slide 29: Vaccines: Strong pipeline; emerging as partner of choice
2 Revitalize pipeline by transforming R&D Vaccines: Strong pipeline relevant to developed and developing countries; emerging as partner of choice Two late-stage vaccine candidates High profile external collaborations TAK-003 Dengue fever TAK-426 Zika virus • Phase 3 "TIDES" pivotal • Funding awarded
Slide 30: Boost CE margin and unlock cash
Clear steps to continue driving profitable growth 1 Deliver strong business performance 2 Revitalize pipeline by transforming R&D 3 Boost CE margin and unlock cash 30
Slide 31: Boost Core Earnings margin 100-200bps/year
3 Boost CE margin and unlock cash Boost Core Earnings margin 100-200bps/year Progress in FY2016 H1 Focus Areas Underlying Core Earnings Sustainably increase Underlying Core +12.7%; margin up +70bps Earnings margin 100-200bps per year Project Summit ahead of plan • ¥100Bn of ¥120Bn Scale up c
Slide 32: Unlock cash for incisive reinvestment
3 Boost CE margin and unlock cash Unlock cash for incisive reinvestment Focus Areas Progress in FY2016 H1 Boost Core Earnings margin Operating FCF +34% vs PY Inventory days reduced 14% Reduce working capital year after year - Extend payables - Inventory management Payables days extended 37
Slide 33: Sustained profitable growth with dividend as key component
Sustained profitable growth with dividend as key component of competitive shareholder returns 1 Deliver strong business performance CLEAR STEPS 2 Revitalize pipeline by transforming R&D 3 Boost CE margin and unlock cash VISION 2025 We serve the needs of our patients, wherever they are. We earn the t
Slide 34: Better Health, Brighter Future
Better Health, Brighter Future Takeda Pharmaceutical Company Limited
Slide 35: Appendix A: Pipeline table
Executing business portfolio transformation – ARIAD Pharmaceuticals Appendix A: Pipeline table (as of FY2016 Q2, with inclusion of portfolio from acquisition of ARIAD) BRIGATINIB ICLUSIG NSCLC CLL/Ph+ALL AP32788 NSCLC 35 Note: this slide does note represent the entire pipeline
Slide 36: Appendix B: Takeda IR information
Appendix B: Takeda IR information Investment Profile IR Contact: (as of January 5, 2017) Noriko Higuchi, Head of Investor Relations Market Cap: $33.4B takeda4502.ir@takeda.com Tel: +81-3-3278-2306 TSE: 4502 52 week high: 6,039 http://betterhealth.takeda.com/ 52 week low: 4,098 Upcoming IR events: OT
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