Takeda Pledges $30 Billion Investment in U.S., Opposes Trump's 'Most Favored Nations' Proposal

Takeda Pharmaceutical Company has announced a significant $30 billion investment in its U.S. operations over the next five years, while simultaneously voicing opposition to President Donald Trump's proposed "Most Favored Nations" (MFN) drug pricing policy. The Japanese multinational's move aligns with similar pledges from other pharmaceutical giants and comes amid ongoing debates about drug pricing and manufacturing in the United States.

Takeda's U.S. Investment Strategy

During Takeda's fiscal year 2024 earnings call, CEO Christophe Weber revealed the company's plans to inject approximately $30 billion into its U.S. operations. This substantial investment reflects Takeda's recognition of the U.S. as "the world's leading market for biopharmaceutical innovation," according to Weber.

The investment package is designed to maintain Takeda's presence in the U.S. market, upgrade manufacturing sites for improved efficiency and productivity, and support ongoing research and development efforts. Weber emphasized that this investment strategy is not a new initiative but rather a continuation of Takeda's long-standing commitment to the U.S. market.

Opposition to 'Most Favored Nations' Proposal

Julie Kim, president of Takeda's U.S. unit, expressed strong opposition to President Trump's proposed "Most Favored Nations" drug pricing policy during the earnings call. The MFN approach aims to lower prescription drug costs in the U.S. by matching prices to the lowest rates charged in other comparable countries.

Kim argued that the MFN policy would effectively implement price controls and could have severe consequences for the pharmaceutical industry. She stated, "From an industry perspective, if MFN were applied within the Medicaid setting... that would be an industry impact over 10 years of up to 1 trillion dollars." Kim further emphasized that such a policy would pose "a significant challenge for the overall industry, Takeda included."

Financial Performance and Product Highlights

Takeda reported strong financial results for fiscal year 2024, with a 7.5% year-on-year revenue growth, totaling ¥4,581.6 billion (approximately $31.6 billion). The company's anti-inflammatory monoclonal antibody, Entyvio, emerged as the strongest growth driver, with sales climbing 8.5% year-on-year to reach ¥914.1 billion ($6.2 billion).

Weber noted that Entyvio, Takeda's largest product by revenue in the U.S., is entirely manufactured within the country. This fact underscores the company's existing commitment to U.S.-based production and may help mitigate potential impacts from proposed tariffs or policy changes.