Takeda Pharma ADR

Takeda delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus. However, it managed to exceed the earnings expectations of Wall Street. They prioritized patients by pricing their dengue vaccines, QDENGA, based on economic stage and health system maturity. They emphasized an inclusive people experience and made progress in reducing greenhouse gas emissions. Takeda also achieved strong financial performance, exceeding revenue and profit growth expectations. They focused on pipeline progress, including approvals for QDENGA and positive late-stage trial results for TAK-755. Although facing temporary headwinds from loss of exclusivity, Takeda’s team remains confident in growth opportunities from new products and pipeline advancements, aiming to return to revenue, profit, and margin growth. The management anticipates temporary challenges in the fiscal year 2023 but remains committed to their pipeline, capital allocation strategy, and dividend growth. We give Takeda Pharmaceutical Company Limited a ‘Hold’ rating with a revised target price.