Kazuaki Hashiguchi

Kazuaki Hashiguchi of Daiwa Securities asked for Takeda's perspective on potential changes in the U.S. business environment, including PBM redesign and geopolitical tariffs, and their potential impact on the business.

Answer

CEO Christophe Weber acknowledged the changing U.S. environment, including bipartisan support for the IRA, but stressed the market remains vital for innovation. He noted that while there are positives like the Medicare out-of-pocket cap, risks like trade tariffs could require Takeda to adapt its global manufacturing network over time.

Kazuaki Hashiguchi of Daiwa Securities asked for an update on Xocova's approval status in China and the likelihood of achieving its sales plan there. He also questioned if the costs for the special retirement program were included in the initial forecast.

Answer

Koji Hanasaki, Executive Officer, explained that discussions with Chinese authorities are ongoing and that demand for Xocova is expected to be high for the winter season. Masako Kudou, VP of Finance & Accounting, clarified that while the retirement program costs were not in the initial forecast, the company is confident in achieving its full-year plan due to strong first-half progress.

Kazuaki Hashiguchi of Daiwa Securities questioned the strategy to increase Xocova prescriptions and asked about the significant SG&A expenses planned for the second half of the year, particularly in relation to overseas Xocova commercialization.

Answer

Toshinobu Iwasaki, Executive Officer, identified gaining normal (non-emergency) approval and positive long-COVID data as key potential triggers to boost prescriptions. Takeki Uehara, Executive Officer, added that the high SG&A is largely due to distribution and promotion fees paid to partners in China for the Xocova launch.

Kazuaki Hashiguchi from Daiwa Securities asked about the strategy to expand Xocova's use in Japan, specifically what type of clinical data would be publicized to trigger a revision of treatment guidelines. He also inquired about the company's desired position for the pharmaceutical industry organization to advocate for during future drug pricing discussions.

Answer

Takeki Uehara, Corporate Officer and SVP of Drug Development, explained that data on antiviral efficacy against Omicron and data showing alleviation of long-COVID symptoms would be disclosed at a February conference, which they hope will influence guideline discussions. Toshinobu Iwasaki, Senior Executive Officer, added that regarding pricing, the company believes drugs for pandemics should be treated differently from other drugs and not be subject to the typical trend of price reductions.

Kazuaki Hashiguchi of Daiwa Securities asked about the differing market perceptions and treatment selection philosophies for oral COVID-19 antivirals across various regions. He also inquired about the status of the superiority study for the vaccine S-268019 against Vaxzevria and its application timeline.

Answer

John Keller, SVP of R&D, detailed regional differences, noting rapid U.S. adoption of Paxlovid versus slower uptake in Europe. Ryuichi Kiyama, Senior Executive Officer, added that S-217622 targets a broader, lower-risk segment. Regarding the vaccine, Kiyama confirmed a paper with positive results is being prepared for publication and the submission package is in development.