Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Zasocitinib IR Event Phase 3 Psoriasis Data Presented at AAD March 28th, 2026 ET / March 29th, 2026 JST Photo: IFPA | All the Colors We Are This material is prepared and distributed solely for the purpose of providing information about Takeda's management or busine ss to shareholders, investors, and analysts, and is not intended to induce purchase or prescription of any specific drugs and other products. This material is not intended for healthcare professionals, patients, or other persons other than those ...

Core Insights - Takeda's Zasocitinib has shown rapid and durable skin clearance for psoriasis patients, indicating its potential to transform psoriasis care [1] Company Overview - Takeda is advancing its psoriasis treatment portfolio with Zasocitinib, which is administered as a convenient once-daily pill [1] Industry Impact - The introduction of Zasocitinib may reshape the landscape of psoriasis treatment, offering a new option for patients seeking effective management of their condition [1]

Investment Rating - The report maintains a positive outlook on Takeda Pharmaceutical, indicating that there is more potential to be unlocked in the future [3][4]. Core Insights - Takeda reported a 4.2% year-on-year revenue growth for Q3 FY2026, aligning with market expectations. Net profit surged by 335.7% due to improved profit margins and reduced non-operating costs, exceeding market forecasts [4]. - The company anticipates multiple late-stage pipeline products to be launched starting in FY2026, including Zasocitinib, which has shown competitive results in clinical trials for moderate to severe plaque psoriasis [5][6]. - The strong performance of Entyvio, with an 18% increase in sales to 265 billion yen, was noted, although the decline in Vyvanse sales by 42% partially offset this growth [4]. Summary by Sections Financial Performance - For Q3 FY2026, Takeda's revenue reached 1.192 trillion yen, a 4.2% increase year-on-year, with net profit rising to 104 billion yen, a 335.7% increase [4]. - The company maintained its full-year guidance for FY2026 despite fluctuations in product sales [4]. Pipeline Developments - Takeda's late-stage assets, including Zasocitinib and Dacomitinib, are expected to be submitted for new drug applications in FY2027, with promising clinical trial results reported [5][6]. - The company has also submitted a new drug application for rusfertide and plans to enter the application phase for oveporexton shortly [5]. Market Position - Takeda operates in various therapeutic areas, including gastroenterology, rare diseases, plasma-derived therapies, oncology, and neuroscience [8]. - The company’s revenue distribution shows that 29.6% comes from gastroenterology, 22.5% from plasma-derived therapies, and 16.4% from rare blood diseases, with significant contributions from the Americas [10].

Financial Data and Key Metrics Changes - Revenue for the nine-month period was just over JPY 3.4 trillion, a decrease of 3.3% or -2.8% at constant exchange rate [10] - Core Operating Profit was JPY 971.6 billion, a year-on-year decrease of 3.4% at both actual effects and constant exchange rate [10] - Reported operating profit was JPY 422.4 billion, an increase of 1.2% [11] - Core EPS was JPY 428, and reported EPS was JPY 137 [11] - Adjusted free cash flow was JPY 625.9 billion, even after a $1.2 billion upfront payment to Innovent Biologics [11] Business Line Data and Key Metrics Changes - Growth and launch products represented over 50% of total revenue and grew 6.7% at constant exchange rate [11] - In GI, Entyvio grew 7.4% at constant exchange rate, with strong growth in Q3 due to a one-time gross-to-net drop [12] - Rare diseases product Takhzyro slowed to 2.4% growth at constant exchange rate, impacted by new competing products in the US [12] - Immunoglobulin growth was 4.3% year to date, driven by subcutaneous IG products [13] - Qdenga growth accelerated to 22.1%, primarily driven by Brazil [13] Market Data and Key Metrics Changes - Entyvio Pen is now on formulary with all three large pharmacy benefit managers, achieving commercial coverage of more than 80% [12] - Takhzyro's growth is being offset by new competitors and the impact of Medicare Part D redesign in the U.S. [13] - Albumin has returned to growth of 1.3%, but slower than expected due to softening demand in China [13] Company Strategy and Development Direction - The company is preparing for significant new product launches, focusing on Oveporexin, rusfertide, and zasocitinib, expected to launch over the next 18 months [5][6] - The late-stage pipeline includes eight programs with potential to transform the standard of care [8] - The company is committed to maintaining operational efficiency while investing in R&D for future growth [15] Management's Comments on Operating Environment and Future Outlook - Management revised revenue guidance to low single-digit decline at constant exchange rate due to stronger than anticipated Vyvanse generic erosion [16] - The company maintains full-year guidance for core operating profit and core EPS [16] - Management emphasized the importance of cost discipline while preparing for new product launches [15] Other Important Information - The transition of leadership to Julie Kim, CEO-elect, is underway, with operational responsibilities being handed over [28][30] - The company is focusing on simplifying processes and adopting advanced technologies [31] Q&A Session Summary Question: Thoughts on next fiscal year and dividend policy - Management indicated it is too early to provide guidance for the next fiscal year, with the budget being finalized [39] - Emphasis on maintaining a progressive dividend policy, with decisions based on core EPS and cash flow [43] Question: Zasocitinib phase 2 outcomes and safety data - Data from UC and Crohn's disease phase 2 studies expected this year, with ongoing studies on dosing [45] - Safety profile consistent with previous studies, with more data to be presented at an upcoming medical conference [46] Question: Impact of MFN on U.S. policy - Management does not support MFN, emphasizing that price controls could impact future innovation [52] - Organizational changes aim to enhance competitiveness and speed in U.S. marketing [54] Question: Entyvio sales performance and IRA impact - Q3 sales were robust, with improved coverage in the U.S. [59] - Anticipation of price negotiations under IRA, with uncertainty on the extent of potential price cuts [61] Question: Takhzyro growth trends and competitive impact - Takhzyro remains the gold standard, but growth is impacted by new competitors and Medicare Part D redesign [66] - Long-term efficacy data supports Takhzyro's position in the market [66] Question: PDT clinical progress and outlook - Demand slowdown noted, particularly in albumin due to regulatory changes in China [81] - Overall outlook for PDT remains mid-single-digit growth for the year [81] Question: Zasocitinib phase III data presentation - Presentation at AAD is a possibility, with focus on fast onset of action and clear skin [87] - Competitive advantages include ease of administration and strong safety profile [88]

TSE: 4502 Committed to Growth & Shareholder Returns FY2025 Q3 Earnings Announcement The companies in which Takeda directly and indirectly owns investments are separate entities. In this presentation, "Takeda" is sometimes used for convenience where references are made to Takeda and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifyi ...

Investment Rating - The report maintains a "Buy" rating for the pharmaceutical and biotechnology sector [1] Core Insights - The oral treatment landscape for psoriasis has established a dual leadership pattern with TYK2 and IL23 inhibitors, highlighting the potential of companies like Yifang Biopharma, Nocankang, and Haishike [1][16] - The A-share pharmaceutical index has shown a year-to-date increase of 14.49%, while the Hang Seng Healthcare Index has surged by 65.28% [4][9] - The report emphasizes the importance of innovative drugs, with a ranking of preferred sub-industries: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies [10][12] Industry Trends - The report notes that the A-share pharmaceutical index has underperformed relative to the CSI 300 index, with a slight decrease of 0.14% this week [4][9] - The report highlights the strong performance of the medical commercial sector (+4.94%) and medical devices (+1.16%) this week, while the chemical pharmaceuticals sector saw a decline of -1.74% [4][9] - The report identifies key companies to watch in the TYK2 space, including Yifang Biopharma and Nocankang, as well as those involved in oral IL23 treatments like Haishike [16][12] Company-Specific Recommendations - Recommended companies in the innovative drug sector include: - Yifang Biopharma - Nocankang - Haishike - Heng Rui Medicine - Bai Jie Shen Zhou - Shi Yao Group - Zai Jian Medicine - Di Zhe Medicine [12][16] - In the CXO and research services sector, recommended companies include: - WuXi AppTec - Hao Yuan Medicine - Aopumai - Kingsray Biotech [12] - For traditional Chinese medicine, companies to focus on include: - Zuo Li Pharmaceutical - Fang Sheng Pharmaceutical - Dong E E Jiao [12] Market Performance - The report indicates that the A-share pharmaceutical index has shown a year-to-date increase of 14.49%, while the Hang Seng Healthcare Index has increased by 65.28% [4][9] - The report also notes that the medical commercial sector has performed well this week, with a gain of 4.94% [4][9]

Investment Rating - The report suggests a positive investment outlook for the innovative drug sector and anticipates a reversal of challenges in the left-side sectors, identifying them as the biggest investment opportunities in the pharmaceutical sector for 2025 [4]. Core Insights - The launch of the Ant Group's AI health application "Antifufu" has significantly increased attention on the medical AI theme, addressing previous issues in internet healthcare such as low user engagement and limited access to quality medical resources [1][12]. - Takeda's TYK2 inhibitor Zasocitinib has successfully met all primary and secondary endpoints in its Phase III clinical trials for moderate to severe plaque psoriasis, with over 50% of patients achieving PASI 90 and approximately 30% achieving PASI 100 by week 16 [2][44]. - The report highlights the successful results of Eli Lilly's orforglipron in maintaining weight loss over 52 weeks, indicating its potential to extend the usage cycle of GLP-1 medications [2][46]. Summary by Sections AI Medical Applications - The Antifufu app has upgraded its features to include health companionship, health Q&A, and health services, effectively increasing user engagement and linking patients with medications and services [1][12]. - The platform connects with 5,000 hospitals and 300,000 real doctors, democratizing access to quality medical resources [1][12]. Pharmaceutical Sector - Takeda's Zasocitinib has shown promising results in clinical trials, with plans to submit a new drug application to the FDA and other regulatory bodies by the 2026 fiscal year [2][44]. - The report emphasizes the potential of innovative drugs, particularly dual/multi-antibody drugs and those addressing unmet clinical needs in chronic diseases, as key investment opportunities [4]. Biologics - Eli Lilly's orforglipron has demonstrated superior weight maintenance compared to placebo, suggesting a promising future for GLP-1 drugs [2][46][48]. Medical Devices - The domestic continuous glucose monitoring (CGM) market is expected to expand, driven by rapid product iterations and improvements in quality and patient acceptance [3]. Retail Pharmacy - The report notes that leading companies in the pharmacy sector are likely to increase market share through mergers and acquisitions during the industry consolidation phase [3]. Medical Services and Consumer Healthcare - The AI medical market is being validated as a scalable business model, with ongoing developments in AI healthcare applications [3][4]. Key Investment Targets - The report identifies several key companies for investment consideration, including Innovent Biologics, Kintor Pharmaceutical, and others in the pharmaceutical and healthcare sectors [5].

Market Overview - The A-share market showed a high-level fluctuation with the Shanghai Composite Index rising by 0.36%, the Shenzhen Component Index increasing by 0.66%, and the ChiNext Index up by 0.49% [1][13] - The total trading volume in the Shanghai and Shenzhen markets reached 1.73 trillion yuan, an increase of 704 billion yuan compared to the previous trading day, with over 4,400 stocks rising [1][13] - The Hong Kong market also saw gains, with the Hang Seng Index up by 0.75% and the Hang Seng Technology Index rising by 1.12% [1][13] Sector Performance - Main capital inflows were observed in sectors such as general equipment, automotive, and retail, while there were outflows from semiconductor, aerospace, and electronics sectors [2][14] - The consumer sector experienced a surge, particularly in retail and duty-free shops, while sectors like Hainan Free Trade Zone, nuclear fusion, rare earth permanent magnets, cross-strait integration, and intelligent driving concepts were active [2][14] Economic Data and Policy Impact - The U.S. inflation data for November showed a significant drop, with the overall CPI year-on-year falling to 2.74%, below the expected 3.06%, which has raised questions about data accuracy due to the government shutdown affecting previous data [3][15] - The Bank of Japan raised its target interest rate by 25 basis points to 0.75%, marking a 30-year high, which aligns with market expectations for ongoing monetary policy normalization [3][15] Innovation Drug Sector - The innovation drug sector is rebounding due to several catalysts, including a recovery in valuation after months of correction and upcoming key clinical data disclosures at the ASCO annual meeting in May 2026 [4][17] - The sector is entering a commercialization phase, with policy support extending from process optimization to full-chain empowerment, enhancing competitiveness [4][17] Hong Kong Technology Sector - The Hong Kong technology market has faced short-term pressure but is expected to rebound, with potential for capital inflows post-Christmas [6][18] - The market anticipates a recovery in January, although the extent of the rebound may be limited [6][18] Commodity Sector - The commodity sector, particularly non-ferrous metals, is performing well due to multiple factors, including a slowdown in U.S. CPI data, which has raised expectations for liquidity easing and supported metal prices [8][20] - The easing of rare earth export controls and a balanced supply-demand situation in industrial metals are also contributing to the sector's strength [8][20] Investment Opportunities - Investors are encouraged to consider ETFs focused on innovation drugs, Hong Kong technology, and commodities, as these sectors show potential for growth and recovery [4][21][22]

Core Insights - Takeda's Zasocitinib shows promising results in Phase 3 trials for treating plaque psoriasis, indicating potential for a new treatment era with a once-daily pill format [1] Group 1: Clinical Data - The Phase 3 trial data for Zasocitinib demonstrates significant efficacy in achieving clear skin for patients with plaque psoriasis [1] - The treatment is designed to be taken once daily, enhancing patient compliance and convenience [1] Group 2: Market Implications - The successful results from the trial could position Takeda as a leader in the psoriasis treatment market, potentially increasing market share [1] - The introduction of Zasocitinib may catalyze a shift in treatment paradigms for plaque psoriasis, influencing future drug development strategies [1]