Takeda Sharpens Oncology Focus, Deprioritizes Cell Therapy in Strategic Restructuring

Takeda Pharmaceutical Company has unveiled a significant restructuring of its research and development (R&D) strategy, with a particular emphasis on reshaping its oncology portfolio. The Japanese drugmaker is narrowing its focus to three key modalities while scaling back investments in cell therapy, signaling a shift in priorities that aligns with broader industry trends.

Oncology Strategy Realignment

Takeda's oncology leaders are now prioritizing work in thoracic, gastrointestinal (GI), and hematological tumors. Teresa Bitetti, president of Takeda's global oncology business unit, emphasized that this approach is driven by unmet medical needs, scientific advancements, and the company's inherent strengths.

The restructured R&D focus has been narrowed from 10-12 modalities to just four: small molecules, biologics, antibody-drug conjugates (ADCs), and allogeneic cell therapies. However, within oncology, the emphasis is primarily on ADCs, small molecules, and complex biologics, with cell therapy taking a back seat.

Dr. P.K. Morrow, head of Takeda's oncology therapeutic area unit, explained the rationale behind deprioritizing cell therapy: "Anytime we're dealing with gene therapy or cell therapy, there's the potential risk for a durable negative effect. It doesn't happen most of the time, but there's always the potential, right?"

Pipeline Developments and Strategic Partnerships

Despite the restructuring, Takeda maintains that it now boasts its "most robust late-stage pipeline" in the company's history. The oncology unit is particularly excited about rusfertide, an injectable hepcidin mimetic for treating polycythemia vera (PV). Following a recent phase 3 success, Takeda plans to file for regulatory approval by the end of the year.

The company continues to pursue strategic partnerships, particularly with Chinese biotechs. Notable collaborations include a $400 million deal with Hutchmed for fruquintinib (now marketed as Fruzaqla) and a potential $1.3 billion agreement with Ascentage Pharma for olverembatinib, targeting chronic myeloid leukemia.

Takeda's approach to deals focuses on validated modalities in disease areas where they believe they can make the greatest impact. A recent example is the $200 million upfront payment to Keros Therapeutics for rights to elritercept, an activin inhibitor being developed for anemia associated with blood cancers.

Global Strategy and Innovation Focus

Despite geopolitical challenges, Takeda remains committed to global innovation, particularly from China. Bitetti stated, "One can't afford to ignore the innovation that's available today coming out of China. It's not just me-toos that are coming out of China—there's some really interesting science."

The company continues to build on its strengths in hematology, leveraging institutional knowledge gained from early successes like Velcade and the acquisition of Millennium Pharmaceuticals in 2008. This legacy has been crucial in developing therapies that can serve as backbones for other regimens and in attracting talent with expertise in precision medicine.

As Takeda navigates this strategic shift, the company maintains its commitment to diversity, equity, and inclusion in both clinical trials and business management. The restructuring, while streamlining operations, has reportedly energized the oncology unit, with leaders expressing confidence in the focused approach to drug development and commercialization.