Takeda Pharmaceutical Company Limited (NYSE:TAK) posted a third-quarter 2025 adjusted net profit of 235 billion Japanese yen (approximately $1.53 billion).

The company reported earnings per American Depositary Share (EPADS) of 47 cents, missing analyst expectations of 55 cents. However, in yen, earnings per share increased 12.4% (+5.4% at CER) to 149 yen.

Total sales for the quarter amounted to $7.60 billion (1.192 trillion yen), missing the consensus estimates of $8.53 billion. Sales were 4.2%, and at constant currency, sales fell marginally by 0.6%.

The decline was primarily due to a decrease in Neuroscience revenue, mainly from the continued impact of generic erosion of Vyvanse for attention deficit hyperactivity disorder (ADHD).

Third quarter Neuroscience sales fell 23.6% to 108.4 billion yen, vaccine sales almost doubled to 23.3 billion yen, and cancer drug sales were up 3.8% to 148.8 billion yen.

Gastrointestinal sales rose by 12.1% to 385.8 billion yen, while rare diseases revenue was up 1.9% to 194.0 billion yen. PDT revenues were up 9.9% to 273.1 billion yen.

Core operating profit jumped 16.1% (+10.1% CER) to 332.4 billion yen.

Takeda CFO, Milano Furuta, on Thursday commented, "While we manage the impact of VYVANSE generics, we are implementing disciplined cost management and improving operational efficiency and therefore expect to achieve the previously disclosed management guidance for core operating profit."

Outlook

Takeda has updated its fiscal 2025 management guidance for revenue primarily due to Vyvanse, and raised 2025 forecasts to reflect cost discipline and FX tailwind.

The Japanese drug maker expects core sales to decline in the low single-digit percentage compared to the broadly flat expectation earlier.

The company reiterates a low-single-digit decline for core operating profit and EPS.

Takeda revised its fiscal 2025 core revenue guidance from 4.50 trillion yen to 4.53 trillion yen.

The company expects core operating profit of 1.15 trillion yen, up from prior guidance of 1.13 trillion yen, and core earnings of 486 yen, up from previous guidance of 479 yen.

Recently, the U.S. Centers for Medicare & Medicaid Services (CMS) selected 15 high-cost prescription drugs for the third cycle of the Medicare Drug Price Negotiation Program, marking the first time the initiative includes drugs reimbursed under Medicare Part B.

Takeda's Entyvio (vedolizumab) for severe ulcerative colitis (UC) or Crohn's disease is also in the list.

TAK Price Action: Takeda Pharmaceutical Co shares were up 0.36% at $16.75 during premarket trading on Thursday. The stock is trading near its 52-week high of $16.93, according to Benzinga Pro data.

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