Investment Rating - The report maintains a "Strong Buy" rating for the non-bank financial sector, specifically focusing on the elderly care industry [1]. Core Insights - The elderly care industry is characterized by a diverse range of participants, including government entities, real estate companies, insurance firms, and specialized elderly service operators. Insurance companies are identified as the main investors in elderly communities due to their financial, customer, and resource advantages [3][4]. - The operational models in the elderly care sector primarily consist of heavy asset and light asset approaches, with heavy asset models being suitable for financially robust participants like insurance and real estate companies [3][4]. - The profitability of elderly care institutions revolves around rental and sales strategies, with a predominant focus on external leasing for stable income generation [4]. Summary by Sections 1. Current Status of Institutional Elderly Care Services - The development of institutional elderly care services is steadily progressing, supported by policies that encourage a multi-faceted approach to elderly care [15][32]. - The number of registered elderly care institutions and their bed capacity has been increasing, although the overall bed utilization rate has declined, indicating a faster growth in community care services [33]. 2. Diversity of Participants in Elderly Real Estate - The elderly real estate sector features four main types of social capital participants, each with unique strengths, with insurance companies holding a comprehensive advantage [3]. - The operational models are categorized into heavy asset, light asset, and a combination of both, allowing for flexibility in service coverage [3][4]. 3. Profitability Models - Elderly care institutions primarily generate revenue through direct sales, external leasing, or a combination of both, with external leasing being the most common approach for stable income [4].

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, focusing on companies believed to be undervalued based on fundamental analysis [2] Company Summary: Takeda Pharmaceutical Co. (TAK) - TAK has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the best value stocks currently available [3] - The P/B ratio for TAK is 0.93, which is attractive compared to the industry average of 1.27. Over the past 12 months, TAK's P/B has fluctuated between 0.79 and 1.03, with a median of 0.89 [4] - TAK's P/S ratio stands at 1.61, significantly lower than the industry average of 2.88, suggesting a more favorable valuation based on sales [5] - The P/CF ratio for TAK is 7.25, which is appealing when compared to the industry's average of 8.79. In the past year, TAK's P/CF has ranged from 5.84 to 7.95, with a median of 6.73 [6] - These valuation metrics indicate that TAK is likely undervalued, especially when considering its strong earnings outlook [7]

Core Insights - Takeda has received EMA approval for a new 2 mL pre-filled pen option for TAKHZYRO® (lanadelumab) aimed at adolescents (aged 12 years and above) and adult patients with Hereditary Angioedema (HAE) [1][5] - This new administration option enhances Takeda's commitment to the HAE community by providing individualized treatment solutions to alleviate the burden of HAE and improve patients' quality of life [1][2] Company Overview - Takeda is a leading biopharmaceutical company focused on creating better health outcomes and delivering life-transforming treatments across various therapeutic areas, including rare diseases [7] - The company emphasizes innovation and patient-centric solutions, particularly for underserved communities, and has a strong historical engagement in HAE treatment [2][7] Product Information - TAKHZYRO® is a fully human monoclonal antibody that targets plasma kallikrein, indicated for the routine prevention of recurrent HAE attacks in patients aged 2 years and older [4][6] - The newly approved 300 mg solution for injection in a pre-filled pen is designed for subcutaneous administration, allowing for self-administration or caregiver administration after proper training [4][8] Market Context - HAE is a rare genetic disorder affecting approximately 1 in 50,000 people globally, often under-recognized and under-treated [2][3] - The approval of the new administration option is expected to provide an additional individualized treatment choice for HAE patients aged 12 years and older, enhancing their management options [2][5]

Core Viewpoint - The article compares Takeda Pharmaceutical Co. (TAK) and Daiichi Sankyo Co., Ltd. (DSNKY) to determine which stock is more attractive to value investors [1] Valuation Metrics - TAK has a forward P/E ratio of 8.75, while DSNKY has a forward P/E of 31.85 [5] - TAK's PEG ratio is 0.25, indicating a more favorable valuation compared to DSNKY's PEG ratio of 1.76 [5] - TAK's P/B ratio is 0.88, significantly lower than DSNKY's P/B of 4.23, suggesting that TAK is undervalued relative to its book value [6] Earnings Outlook - TAK is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - The Zacks Ranks for TAK and DSNKY are 2 (Buy) and 3 (Hold), respectively, indicating a stronger earnings outlook for TAK [3]

Core Insights - The article emphasizes the importance of value investing and highlights specific stocks that exhibit strong value characteristics, particularly Takeda Pharmaceutical Co. (TAK) and USANA Health Sciences (USNA) [1][2][9] Company Analysis: Takeda Pharmaceutical Co. (TAK) - TAK has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3] - The P/B ratio for TAK is 0.86, which is attractive compared to the industry average of 1.28. Over the past year, TAK's P/B has fluctuated between 0.79 and 1.03, with a median of 0.90 [4] - TAK's P/S ratio stands at 1.52, significantly lower than the industry's average of 2.75, suggesting it may be undervalued [5] - The P/CF ratio for TAK is 6.75, which is favorable compared to the industry average of 8.87. The P/CF has ranged from 5.68 to 7.10 over the past year, with a median of 6.35 [6] Company Analysis: USANA Health Sciences (USNA) - USNA is rated 1 (Strong Buy) with a Value score of A, indicating strong value characteristics [7] - The Forward P/E ratio for USNA is 9.65, while the PEG ratio is 0.80, both of which are significantly lower than the industry averages of 53.24 and 2.14, respectively [7] - USNA's price-to-earnings ratio has varied from 9.65 to 18.54 over the past year, with a median of 15.30. The PEG ratio has ranged from 0.80 to 1.54, with a median of 1.28 [8] - The P/B ratio for USNA is 1.09, which is comparable to the industry's average of 1.28, with fluctuations between 1.09 and 2.01 over the past year, and a median of 1.50 [8] Conclusion - Both TAK and USNA exhibit strong value metrics, suggesting they are likely undervalued in the current market environment, making them attractive options for value investors [9]

Group 1 - Takeda Pharmaceutical is highlighted for its attractive dividends and relatively affordable stock prices, making it a potential opportunity for income investors [1] - The article suggests that investors should closely examine Takeda Pharmaceutical due to its better-than-average dividends [1] Group 2 - The author has extensive experience in investment analysis, focusing on deep-discount value plays and underappreciated companies [2] - The analysis aims to identify companies that can return value to investors, indicating a value-oriented investment philosophy [2]

Financial Data and Key Metrics Changes - Takeda reported year-to-date revenue growth of 4.5% at constant exchange rates (CER), with total revenue exceeding JPY 3.5 trillion, marking a 9.8% increase compared to the previous year [14][17] - Core operating profit reached JPY 1 trillion, reflecting a year-on-year increase of 16.3% or 10.1% at CER [17] - The core operating profit margin improved to 28.5%, an increase of 1.6 percentage points [14][15] - Reported operating profit grew by 86% to JPY 417.5 billion, with operating cash flow increasing by 90.8% year-on-year to JPY 835 billion [18][19] Business Line Data and Key Metrics Changes - Growth & Launch products, which represent 47% of total revenue, grew by 14.6% at CER year-to-date [19] - ENTYVIO experienced a growth rate of 6.6% at CER, impacted by shipment timing and a gross to net adjustment of approximately USD 50 million [20][21] - TAKHZYRO in the rare disease segment delivered 16.4% growth at CER [21] - Plasma-derived therapies, including immunoglobulin and albumin, grew by 11.9% and 2.2%, respectively [21] Market Data and Key Metrics Changes - The depreciation of the yen against major currencies contributed JPY 171.9 billion to revenue growth, resulting in a 9.8% increase on an actual FX basis [24] - ENTYVIO's year-to-date growth, excluding one-off adjustments, was 9.2%, indicating a strong underlying demand despite competitive pressures [78] Company Strategy and Development Direction - The company is focused on advancing its late-stage pipeline, with three Phase III data readouts expected in 2025 [15][16] - A share buyback of up to JPY 100 billion has been initiated, reflecting confidence in cash flow and performance [30][31] - The management change is strategically timed to align with upcoming product launches and board member transitions [9][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth for the next fiscal year, despite the residual impact of VYVANSE generic erosion [59] - The company anticipates continued growth from its Growth & Launch products, with a focus on innovation and addressing unmet medical needs [145] - The U.S. healthcare environment is evolving, with potential impacts from the IRA and pricing negotiations, but the company remains committed to its innovative pipeline [124][125] Other Important Information - The company has completed a licensing agreement for elritercept, a late-stage oncology program [15] - Management emphasized the importance of maintaining a strong patent position to mitigate risks from biosimilars entering the market [101] Q&A Session Summary Question: Clarification on accounting issues and R&D expenses - Management clarified that the negative impact on forecasts was due to adjustments in inventory valuation and that R&D expenses related to specific clinical trials would not be recurring [39][46] Question: Management change rationale - The timing for the management change was deemed appropriate to ensure stable leadership before new product launches and to synchronize with board transitions [56][58] Question: ENTYVIO growth concerns - Management noted that ENTYVIO's growth was affected by shipment timing and adjustments, but underlying demand remains strong [78][80] Question: Impact of IRA on clinical development - The inclusion of Otezla in the IRA does not change the company's clinical development plans but reinforces the need for differentiation in efficacy and safety [90][91] Question: Future margin improvement and dividends - Management indicated that core operating profit margins are expected to improve, and while dividend policies are stable, increases depend on future performance [99][100] Question: Biosimilar entry timing for ENTYVIO - Management believes that biosimilar entry will occur between 2030 and 2032, depending on patent litigation outcomes [101][102] Question: Share buyback rationale - The share buyback decision was based on generating more cash flow than planned and aligning with the capital allocation policy [110] Question: R&D spending and pipeline strategy - R&D spending is expected to increase in the fourth quarter, with new Phase III programs starting, and the strategy remains focused on high unmet medical needs [138][145]

Core Insights - Neurocrine Biosciences has amended its agreement with Takeda, obtaining exclusive worldwide rights to develop and commercialize osavampator, except in Japan where Takeda retains rights [1][2] - The collaboration aims to expedite the development of osavampator, a potential first-in-class treatment for major depressive disorder (MDD), with plans to initiate a Phase 3 program in the first half of 2025 [2][4] - Osavampator is designed for patients with MDD who have not responded to at least one antidepressant, addressing a significant unmet medical need [4][5] Company Overview - Neurocrine Biosciences is a biopharmaceutical company focused on developing treatments for neurological, neuroendocrine, and neuropsychiatric disorders, with a diverse portfolio including FDA-approved therapies and a robust pipeline [6] - The company has a history of collaboration with Takeda, initially partnering in 2020 to develop compounds for depression and schizophrenia, including osavampator [3] Product Details - Osavampator is an investigational AMPA positive allosteric modulator, which has shown positive topline data in a Phase 2 study for MDD [4] - The drug targets a significant patient population, as over 21 million people in the U.S. suffer from MDD, with approximately one-third not responding to existing antidepressants [5]

TSE: 4502 ISB Committed to Growth & Shareholder Returns FY2024 Q2 Earnings Announcement October 31st, 2024 Important Notice For the purposes of this notice, "presentation" means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited ("Takeda") regarding this presentation. This presentation (including any oral briefing and any question-and-answer in connection with it) is not intended to, and doe ...

Financial Data and Key Metrics Changes - First half revenue increased by 13.4% year-on-year, reaching almost ¥2.4 trillion, with a 5% growth at constant exchange rates [21] - Core operating profit rose by 22.3% year-on-year to ¥719.9 billion, or 12.9% at constant exchange rates [21] - Reported operating profit grew nearly 200% to ¥350.6 billion, aided by fewer impairments and one-time costs compared to the previous fiscal year [21] - Core EPS and reported EPS were ¥310 and ¥119, respectively [21] - Operating cash flow increased by 54.9% year-on-year to ¥451.3 billion, reflecting strong profit growth and improvements in working capital [21] Business Line Data and Key Metrics Changes - Growth & Launch products grew by 18.7% at constant exchange rates, now accounting for 47% of total revenue [6][10] - VYVANSE experienced a decline of 29% in the U.S. and 18% globally, with expectations of accelerated generic erosion in the second half [6] - ENTYVIO returned to double-digit growth, achieving a growth rate of 10% in the first half [15] - Newly launched products like FRUZAQLA and ADZYNMA exceeded revenue expectations, with FRUZAQLA achieving a 29% market share in the fourth line as of July [11][12] Market Data and Key Metrics Changes - The U.S. market for ENTYVIO is expected to grow at 11%, down from a previous estimate of 16%, due to competitive dynamics and pricing pressures [65] - The plasma business showed strong first-half growth of 14% year-on-year, although there was a decline in sales from Q1 to Q2 [48] - The company maintains full-year guidance of high single-digit growth for the PDT business overall [48] Company Strategy and Development Direction - The company is focused on driving efficiencies to improve margins, with a multi-year efficiency program aimed at improving core operating profit margin by 100 to 250 basis points each year [25] - R&D investments are being weighted towards the second half of the fiscal year to support multiple late-stage programs now in Phase 3 [7] - The company is expanding its late-stage pipeline with significant advancements in programs like TAK-861 for narcolepsy and mezagitamab for IgA nephropathy [8][38] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year guidance based on strong first-half performance and updated foreign exchange assumptions [9] - The company is optimistic about the future potential of its Growth & Launch products, despite challenges from generic erosion of VYVANSE [6][19] - Management expressed confidence in the long-term growth potential of ENTYVIO, projecting peak sales of $7.5 billion to $9 billion [18] Other Important Information - The company has initiated a global Phase 3 development program for TAK-861 in narcolepsy type 1, with strong enthusiasm among investigators [37] - The company is preparing for an R&D Day on December 12, focusing on late-stage pipeline programs and their commercial potential [40] Q&A Session Summary Question: Trends in the plasma business and mezagitamab market positioning - The plasma business showed strong first-half growth, but there was a decline in Q2 sales compared to Q1 due to planned upgrades and shutdowns [48] - Mezagitamab is expected to fit well into the treatment landscape for IgA nephropathy, with strong data suggesting it could be a best-in-class option [51][52] Question: ENTYVIO market outlook and competitive dynamics - The peak sales outlook for ENTYVIO did not initially contemplate combination therapy, but the company is exploring this avenue [58] - ENTYVIO remains the most frequently prescribed brand in the U.S. for IBD, with a strong safety and efficacy profile [59] Question: Guidance changes and overall company outlook - The guidance for ENTYVIO was lowered due to slower-than-expected growth and competitive pressures [65] - The company remains confident in its overall guidance despite anticipated challenges from VYVANSE's generic erosion [66]