Welcome to Takeda’s Annual Integrated Report.
This report outlines our business performance for the fiscal year ended March 31, 2021, incorporating both our financial and non-financial results. It also details how we plan to create value over time and introduces the many ways we are future-proofing the company – as Takeda celebrates its 240th anniversary this year.
Despite the challenges of a devastating pandemic, Takeda’s global team has continued to meet the needs of patients throughout FY2020, showing tremendous resilience and strength in the process. We have also essentially completed our integration of Shire. We are now operating as one company with a unified culture and a common purpose based on our values of Takeda-ism (Integrity, Fairness, Honesty and Perseverance), which are brought to life through Patient-Trust-Reputation-Business, in that order.
Since becoming External Director of Takeda in June 2014 – the same time Christophe Weber, president and CEO, was appointed – I’ve worked to strengthen the Board of Directors, using my experience of leading a global company, albeit in a different industry.
Today, 16 directors from six countries serve on Takeda’s Board, made up of external directors, including me as the chair of the board meeting, and internal directors, including Christophe Weber and Costa Saroukos, chief financial officer. At my request, every board meeting starts with an update from Christophe, with negative news – if any – reported first.
With such a diverse group, even our virtual meetings are lively discussions with frank exchanges of opinions. In fact, when the acquisition of Shire was added to the agenda in 2017, shortly after I was appointed Chair, I was initially against it.
REVENUE: Yearly revenue growth was largely
driven by our 14 global brands, with underlying
revenue growth of 2.2% in FY2020.1
PIPELINE: Progressing 11 new molecular
entities with the potential for up to 15 launches
ACCESS: Our Access to Medicines programs
operate in 54 countries and territories around
the world and have provided treatment to more
than 70,000 patients.2
SUPPLY: We partner with 41,000 third-party
suppliers around the world for the materials
and services needed for the production and
distribution of our medicines.
1. Takeda uses certain non-IFRS measures to supplement the analysis of results of operations under International Financial Reporting Standards (“IFRS”).
Please refer to appendix pages for definitions, explanations and reconciliations of non-IFRS measures.
2. From March 2019 - December 2020.
Our long-established commitment to put patients at the center of all we do and contribute to society have guided us since our founding in 1781. Our values of Integrity, Fairness, Honesty and Perseverance, collectively named “Takeda-ism,” have guided our company throughout its 240-year journey. We bring Takeda-ism to life through actions based on Patient-Trust-Reputation-Business, in that order, to form a philosophy that defines who we are, what we do and why it matters.
Building from Takeda’s strong heritage, our corporate philosophy brings greater focus to our purpose, vision, values and imperatives. At the heart of our corporate philosophy is our purpose to bring Better Health for People, Brighter Future for the World.
Creating long-term value for all our stakeholders, we consider how our actions will impact the next decade, not just the next quarter. We need to be agile and take advantage of the opportunities these trends present. We must also guard against the threats they pose. Health care investment, the frontiers of science, technology and information, social change and the far-reaching health effects of climate change are some of the most important factors affecting our business today.
At Takeda, we strive to help patients and their loved ones – to renew hope and offer promise. Drug discovery is challenging but we, along with the global scientific community, are ushering in a new age of innovation. We are inspired by the strength and determination of patients and are determined to support them through our work.
Our world-class R&D engine is focused on developing medicines and vaccines that can make a critical difference to the lives of people around the world. As a values-based organization that puts patients first, we are constantly working to ensure that the patient perspective informs our work and fuels our innovation strategy.
As a global biopharmaceutical company, providing access to medicines is a responsibility as well as a part of our business model, so we’ve created a practical framework to guide and structure the execution and evolution of our pricing strategies to achieve value-based health care.
Our people are the cornerstone of Takeda’s success, and we recognize that creating diverse, inclusive and equitable work environments is critical to building a healthy company culture that empowers our employees to live our purpose every day.
At Takeda, our culture encourages and appreciates our differences and the company continues to thrive because of them. We strive to have a workforce as diverse as the communities and patients we serve and we believe that every employee should have equitable opportunities to develop and grow based on merit.
As an organization, we’ve made great strides forward in achieving better representation. Yet, there is more to be done, both locally and globally, and our global business units are tailoring the company’s DE&I efforts to the local markets and countries where Takeda has a presence.
A key element of Takeda’s commitment to building Better Health for People, Brighter Future for the World is protecting our shared environment and advancing innovation in environmental sustainability. We recognize that risks to the health of the environment pose risks to human health, including the spread of some of the same infectious diseases we’re working to eradicate. With the wisdom gained from our rich, 240-year history, we think long term as a company.
With that in mind, we established global environmental targets that align with the United Nations Sustainable Development Goals across four priority areas: climate change and energy, water conservation, waste management and product lifecycle stewardship.
We consider the impact of our products on the environment through all stages of their lifecycles – from research and development through raw materials procurement, medicine production, use and disposal.
Takeda has accelerated its transformation into a global values-based, R&D-driven biopharmaceutical company, and in doing so is delivering long-term value to patients, our shareholders and society at large. With the Shire integration essentially complete, growth driven by our five key business areas of Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies (PDT) Immunology, Oncology and Neuroscience, and a geographic footprint aligned with global market opportunities, we are positioned for ongoing success.
With the macroeconomic backdrop of the global pandemic, Takeda’s business remains resilient, and our FY2021 management guidance reflects our expected continued acceleration of underlying revenue growth*. We believe this year represents an important inflection point for our pipeline.
We intend to ramp up R&D investment in FY2021 to further advance Wave 1 and Wave 2 pipeline programs, and new partnerships, as well as building additional capabilities in oncology, clinical trial initiation and data and digital sciences. In the mid-term, we expect topline growth momentum to continue, driven by our 14 global brands and Wave 1 pipeline launches.
*Please refer to appendix pages for definitions, explanations and reconciliations of non-IFRS financial measures for reconciliation of FY2021 Core Operating Profit forecast.
Our corporate governance structure is built for thoughtful, agile decision-making guided by our purpose, vision and values. Takeda-ism (Integrity, Fairness, Honesty and Perseverance), brought to life through actions based on Patient-Trust-Reputation-Business, is ingrained in the way we operate at every level of our company.
Our leadership, comprising our diverse and accomplished Board of Directors and Takeda Executive Team, is accountable to the communities that rely on us for responsible delivery on our commitments to patients. As a values-based R&D-driven biopharmaceutical company, we’re built to operate on a global scale with risk management that’s sound and transparent, putting patients at the heart of every decision we make.
Takeda highly values best-in-class governance and its Board comprises of 16 experienced global leaders from diverse backgrounds. The gender, age and geographic diversity of Takeda’s Executive Team, together with its functional expertise and unparalleled experience, ensures agile and transparent decision-making.
Takeda’s Global Corporate Social Responsibility (CSR) strives for Better Health for People and a Brighter Future for the World. We envision a place where prevention measures are exponentially advanced, the health workforce is empowered, systems are prepared against emergency shocks and people are freed from the burden of disease with reliable access to quality care.
When improvements to health systems go beyond filling gaps and short-term outcomes, people and communities thrive, systems can sustainably meet their everyday needs and are prepared for emergencies, and the impact of drugs,
vaccines and all health tools can be realized at scale. In keeping with this aspiration, Global CSR’s philanthropic activities prioritize tangible partnerships and a long-term view toward progress, encouraging innovation beyond commercial products in support of sustainable, resilient health systems for all people, everywhere.
*Photo: The Global Fund / David O’Dwyer