Takeda Pharmaceutical Company Limited reported its third‑quarter results for the fiscal year ending December 31, 2025, with total revenue of JPY 3,411.2 billion, a 3.3 % year‑over‑year decline. The drop is largely attributable to the erosion of VYVANSE sales as generic competitors enter the market, a trend that has been steadily tapering but still exerts pressure on the Neuroscience segment.
Operating profit rose to JPY 422.4 billion, up 1.2 % from the same period a year earlier, while core operating profit fell to JPY 971.6 billion, a 3.4 % decline. The improvement in operating profit reflects disciplined cost controls and reduced restructuring charges, offsetting the revenue drag from VYVANSE generics.
Reported earnings per share were JPY 137 (about $1.14), below the consensus estimate of $0.55, indicating a miss on the reported EPS. However, core EPS of JPY 428 (approximately $3.57) exceeded expectations, driven by stronger performance in the GI, PDT, Oncology, and Vaccines segments and the launch of new products such as Entyvio, Livtencity, and Qdenga.
Management guidance for FY2025 was adjusted modestly: revenue guidance was slightly lowered to account for the VYVANSE headwind, while core revenue guidance was set to decline by a low‑single‑digit percentage at constant exchange rates. The company maintained its outlook for core operating profit and core EPS, signaling confidence in its cost‑control program and the momentum of its pipeline.
Segment analysis shows a sharp revenue decline in Neuroscience, but growth in other areas: GI, PDT, Oncology, and Vaccines each posted double‑digit growth, with the launch portfolio contributing over 50 % of total revenue and growing at 6.7 % on a constant‑exchange basis. CEO Christophe Weber described FY2025 as a “pivotal year” for Takeda, emphasizing the importance of new product launches and late‑stage pipeline development. CFO Milano Furuta highlighted that the VYVANSE headwind is “steadily tapering off” and that operational efficiencies are driving year‑on‑year reductions in operating expenses.
Investors reacted cautiously, focusing on the company’s ability to manage the VYVANSE generic erosion while maintaining core profitability and pursuing a robust pipeline of transformative medicines. The market’s muted response reflects confidence in Takeda’s long‑term growth strategy despite short‑term revenue pressures.
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