Takeda Pharmaceutical Raises Its Profit Outlook
Shares of Japanese drugmaker Takeda Pharmaceutical (NYSE: TAK) were trading 3% higher Tuesday after the company reported a jump in revenue and core operating profit in its fiscal third quarter, reflecting its acquisition of Shire in January 2019, and raised its profit guidance for the year. Revenue was up 83% to 2,520 billion Japanese yen, or $23.0 billion. Excluding the acquisition, revenue declined by 1.2%. Earnings per share were 27 yen or $0.25, up from a loss of 183 yen ($1.67) in the period a year ago.
Takeda operates in five segments, and management reported sales gains in four of them, led by gastroenterology with 10% growth. That's now the company's largest business, accounting for 21% of sales. The rare disease segment, which provided 20% of sales, was the sole decliner -- a sales drop of 11% that was attributed to intensifying competition. Sales of drugs outside the company's core areas also fell 12%, but the management is expecting to divest $10 billion of non-core assets, and is only about halfway through that plan.
Image source: Getty Images.
Source Fool.com
