Date: 2016-07-29
Type of information: Restructuring
Compound:
Company: Takeda Pharmaceutical (Japan)
Therapeutic area: Cancer - Oncology - Gastrointestinal diseases - Digestive diseases - CNS diseases - Infectious diseases
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On July 29, 2016, Takeda Pharmaceutical announced plans to accelerate the R&D organization transformation by refocusing on three key therapeutic areas – Oncology, Gastroenterology and Central Nervous System, plus Vaccines, and concentrating R&D activities in Japan and the U.S. This transformation is critical to provide the company with the necessary organizational and financial flexibility to drive innovation, enhance partnerships, and improve R&D productivity for long-term, sustainable growth. Takeda will optimize its R&D sites globally to build a world-leading R&D organization and pipeline. To accomplish this R&D transformation, Takeda will focus on enhancing operational efficiency and ensuring the needed capabilities are in the right areas, which will include evaluating the need to reduce and concentrate our R&D presence and optimize the interfaces between R&D, business and corporate functions. The number of impacted positions may fluctuate depending on the progress of implementing these programs and the transformation.
Takeda estimates one-time P/L implementation costs for the transformation of approximately 75 billion yen (€ 652 million) and the annual cost savings of approximately 18 billion yen (€ 156.5 million) after the implementation. Takeda intends to re-invest these savings into an innovative pipeline over time. FY2016 implementation costs of up to 25 billion yen (€ 217.3 million) are covered within the general placeholder budget for efficiency initiatives in the consolidated financial forecast for FY2016 announced on May 10, with the remainder of 50 billion yen ((€ 434.7 million) mostly in FY2017. These costs and timing might be updated to reflect the results of the negotiations with the labor unions, partners, and other stakeholders, and options taken by employees. Dividend payments by Takeda will not be affected.
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