Takeda's Strategic Pivot: New Launches and Pipeline Progress Amid Generic Challenges

Takeda Pharmaceutical Company is positioning itself for a strategic pivot as it navigates the impact of generic competition on its ADHD drug Vyvanse while simultaneously preparing for a series of potentially transformative product launches. The Japanese drugmaker's recent financial results and forward-looking statements reveal a company at a critical juncture, balancing current market pressures with ambitious plans for future growth.

Financial Performance and Outlook

Takeda reported a 7.5% increase in revenue to 4.6 trillion Japanese yen ($31.8 billion) for the fiscal year 2024, which ended in March 2025. However, net profit fell by 25.1%, reflecting ongoing challenges. The company's CEO, Christophe Weber, attributed a 4.9% growth in core operating profit to Takeda's "multi-year efficacy program," which has already yielded approximately 200 billion Japanese yen ($1.38 billion) in annualized savings and resulted in 3,000 layoffs to date.

Looking ahead to fiscal year 2025, Takeda anticipates a "broadly flat" revenue of 4.5 trillion yen ($31 billion). This forecast factors in an expected 30% sales decline for Vyvanse, which lost market exclusivity in late 2023 after 16 years. The company describes 2025 as the final year of "significant" generic headwind for Vyvanse, echoing similar statements made about 2024.

Pipeline Progress and Launch Preparations

Takeda's future growth strategy hinges on three key phase 3 readouts expected this year:

1. Rusfertide: A treatment for polycythemia vera, acquired from Protagonist Therapeutics for $300 million, which has already shown positive phase 3 results. Takeda projects potential peak revenue of $1-2 billion and anticipates FDA submissions in 2025.

2. Oveporexton: A narcolepsy type 1 treatment with phase 3 data expected in the first half of the year. Estimated peak sales range from $2-3 billion.

3. Zasocitinib: A TYK2 inhibitor for psoriasis, with phase 3 data anticipated in the latter half of the year. This oral therapy has the highest potential revenue projection of $3-6 billion.

CFO Milano Furuta described these developments as an "inflection point" for Takeda, expressing excitement about the company's growth trajectory. In total, Takeda is preparing for six new product launches, which are expected to help offset the upcoming biosimilar competition to its current lead sales driver, Entyvio, anticipated at the end of the decade.

Strategic Realignment and Market Position

Takeda's "growth and launch" portfolio, which spans six key business areas, now accounts for 48% of its total core revenue. Entyvio, an inflammatory bowel disease (IBD) drug, remains the company's top growth driver, maintaining market leadership despite increasing competition from products like AbbVie's Skyrizi and Rinvoq.

Other notable performers include Fruzaqla, a metastatic colorectal cancer treatment that saw 351% growth to 48 billion Japanese yen ($331 million), and Qdenga, a dengue vaccine targeted to reach 100 million manufactured doses by 2030.

In response to changing market dynamics, Takeda has also made significant cuts to its experimental drug pipeline, including the termination of three cancer candidates. This move has halved the number of oncology medications in the company's phase 1 and 2 pipeline.