Takeda Lowers 2025 Outlook After Weak Q2 And Pipeline Impairment Charges

Core Insights - Takeda Pharmaceutical Company Limited reported a second-quarter 2025 adjusted net profit of 201.6 billion Japanese yen (approximately $1.31 billion), with earnings per American Depositary Share (EPADS) of 43 cents, missing analyst expectations of 44 cents [1][2] - Total sales for the quarter were $7.52 billion (1.18 trillion yen), falling short of consensus estimates of $8.08 billion [1][3] Financial Performance - First half 2025 sales decreased by 6.9% (-3.9% at constant currency) to 2.22 trillion yen, while core operating profit dropped 11.2% to 639.2 billion yen [3] - Neuroscience revenue significantly impacted the decline, with second quarter Neuroscience sales falling 33% to 97.5 billion yen [3] - Vaccine sales decreased by 21.1% to 20.2 billion yen, while cancer drug sales increased by 4.3% to 149.1 billion yen [3] Segment Performance - Gastrointestinal sales rose by 2% to 353.5 billion yen, while revenue from rare diseases fell by 2.7% to 184.1 billion yen [4] Outlook - Takeda updated its full-year 2025 outlook, revising core revenue guidance from 4.53 trillion yen to 4.50 trillion yen [5] - The company expects core operating profit of 1.13 trillion yen, down from prior guidance of 1.14 trillion yen, and core earnings of 479 yen, reduced from previous guidance of 485 yen [5] Stock Performance - Following the earnings report, TAK stock was trading 2.25% lower at $13.46 in premarket trading [6]