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    Stephen Barker • Jefferies

    Stephen Barker's questions to Takeda Pharmaceutical Co Ltd (TAK) leadership

    Stephen Barker's questions to Takeda Pharmaceutical Co Ltd (TAK) leadership • Q3 2025

    Question

    Stephen Barker from Jefferies inquired about two accounting matters: a COGS adjustment related to inventory valuation and an R&D expense reclassification. He also sought clarification on the Entyvio gross-to-net true-up adjustment.

    Answer

    Milano Furuta, an executive at Takeda, explained the COGS impact was a one-time recognition of accumulated FX on inventory, with a new process to prevent recurrence. He confirmed the R&D cost was a one-off accrual for post-trial access to discontinued drugs. Regarding Entyvio, he clarified the $50 million adjustment corrected past U.S. government pricing miscalculations over 10 quarters.

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    Stephen Barker's questions to Takeda Pharmaceutical Co Ltd (TAK) leadership • Q1 2025

    Question

    Stephen Barker of Jefferies questioned the rationale for ending the Hunter syndrome partnership with JCR Pharmaceuticals and sought commentary on the decision to pursue an Alzheimer's vaccine with AC Immune, given perceived challenges with the amyloid hypothesis.

    Answer

    R&D President Andy Plump stated the JCR partnership termination was part of a broader pipeline prioritization. Regarding the AC Immune deal, he expressed confidence in the amyloid beta target, suggesting a vaccine could offer a safer profile and be used earlier in treatment to potentially increase efficacy. Executive Julie Kim added that Takeda's existing treatment, ELAPRASE, continues to serve Hunter syndrome patients well.

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    Stephen Barker's questions to Takeda Pharmaceutical Co Ltd (TAK) leadership • Q1 2025

    Question

    Stephen Barker from Jefferies questioned the significant year-over-year decline in Q1 SG&A and R&D spending relative to the full-year forecast. He also asked for more detail on the potential indications for the next-generation orexin agonist, such as sleep apnea or obesity.

    Answer

    CFO Milano Furuta attributed the SG&A decline primarily to foreign exchange effects and noted R&D spending is set to ramp up for new trials, with Q1 benefiting from efficiency programs and tight cost management. R&D President Andrew Plump confirmed the company is exploring a breadth of indications for orexin agonists, including respiration and metabolism, based on scientific literature, but stated it is too early to specify targets like obesity.

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