Q3 2024 Takeda Pharmaceutical Co Ltd Earnings Call
本日は、大変お忙しい中、武田薬品工業の2024年度第3市販開です。
Oribe: I'm the master of ceremony today, head of IR. My name is Oribe. Thank you for this opportunity. I would like to explain about the language setting first. Please find the button for the language selection at the bottom of the Zoom window.
Oribe: If you wish to listen to Japanese, please select Japanese. If you wish to listen to English, please select English. Or if you want to listen to the original language, please keep it off.
Please select English in the Zoom language select button.
Jesus Christ.
本日のコールでは、米国の1995年。
Civil Securities Litigation Association
The actual results may differ from what I told you today.
The potential impacts of these events will be detailed in the latest Form 20-F and other SEC filings.
Voices like these were heard.
Next, we will proceed with research on important notifications regarding positive statements in this meeting. Then, we will explain non-essential financial measures in this meeting. The definition of non-essential financial measures and recovery.
Please refer to the two pages in the appendix of this presentation regarding the financial measures. Now, let's begin the presentation.
First, I would like to hear comments from Christophe Weber.
Hello, Chris. Thank you all for joining us. As you can see from our press release, there is an important announcement regarding the Q3 results today. I will talk about Milan. And I will be retiring from Takeda.
After 12 years of discussions with Mr. Takeda, we have decided on his retirement date as June 2026. I will decide on Mr. Takeda's retirement date as June 2026.
I am proud to select my junior colleague, Ms. Julie Kim, to become the projector of the American business unit. Ms. Julie was chosen as the new candidate at the ordinary shareholders' meeting on June 26, and will subsequently be selected as the CEO of the project.
This decision is very fixed, having experienced a multi-term development process, and by responding to both cabinet and external candidates, it is very fixed and has experienced a multi-term development process.
We are now sharing this decision, which may begin in the second half of 2026, in line with our exciting growth prospects and potential drug extensions.
This allows America to play an important role representing 50% of the finances.
This time period also coincides with the prediction of the retirement of many independent foreign supervisors. Julie and I are actively involved in the process of each trial.
This time, I would like to talk about Julie. Julie joined the Takeda executive team in 2019. For the past three years, she has been in charge of the American business unit and projects with American congressmen. Before that, Julie managed our Plasma-Derived Therapy business unit.
With over 30 years of health experience, he is the only one qualified for this role.
Our committee fully believes in her abilities and excellence in her field. She embodies our corporate values, makes decisions calmly and collaboratively, and values thoughtful consideration. The important thing is to align her responsibilities with Takeda's objectives.
I was the first to see that she has the right character to manage a complex global company like Takeda.
Nothing has changed so far. We are focused on advancing the pipeline to the next stage for future development. I couldn't be more excited about what's happening at Takeda. Back to you, Chris.
Thank you for watching.
Now, I would like to move on to today's presentation. We will also have a Q&A session afterwards.
Oribe: Thank you, Chris. Hello, everyone. This is Milano Furuta speaking. It's my pleasure to give an update on Takeda's Q3 results for FY 2024.
Our close & launch products increased by 14.6% at CER.
In addition to the increase in the top line, an improvement in margins was also announced. By collaborating on margin profits, there was an increase of 1.6 percentage points.
This is reflected in the strength of the development project.
Pollution due to the latest purchase accident from OPEC's efficiency program, compensation from OPEC for the efficiency program implemented in May 2020.
We are also very excited about our late-stage pipeline.
This month, an agreement was reached on the oncology program for the vesting class that can be delayed in the HL-CEPT.
As introduced on the R&D day in December 2025, it will be an important date in the pipeline.
The reading of three Phase 3 data is expected: Ove Brexton for polycythemia vera, Ove Brexton for narcolepsy type 1, and Dafosid Neef for psoriasis.
Based on the momentum of our project, we are submitting the management guidance for the entire year. We also expect an increase in this year's revenue, corporate profit, and core margin.
With the extra cash flow generated from this surprise, we plan to initiate a share buyback of over 10 billion yen.
Slide 4 summarizes the financial results for the first 9 months of FY24.
With an income of over 3.5 trillion yen, it increased by 9.8% compared to last year, which means a 4.5% increase.
The corporate profit reached 1 trillion yen, and the CEO's annual increase ranged from 16.3% to 10.1%.
The reported profit was 41.75 billion yen, an increase of 86%.
Core EPS and Reported EPS correspond to 443 yen and 134 yen, respectively.
See you later
The cash flow is 83.5 billion yen, reflecting an annual increase of 90.8% due to profit growth.
Low cash taxis, smaller increase of working capital
Adjusted free cash flow is 568.3 billion yen
The slide file shows the destruction of our important business area. And it is the Globe and Lounge product that controls our performance.
This product represents 47% of the total budget and combined 14.6% of last year's CR.
In G.I., the growth rate of ATV was 6.6% of CI.
However, the demand we depend on is strong and aligns with the plan, and the growth rate was influenced by two specific factors.
First of all, it's because the Q3 increase was high due to the transportation period last year.
This adjustment was a revision of the government's price adjustments accumulated over more than 10 months since the end of 2022. Regarding this adjustment, excluding the impact of the transportation period, yesterday's interior growth was 9.4% according to CER.
Next, regarding the novel coronavirus infection, Exailo achieved a 16.4% increase in CA and continues to lead the prophylaxis market for HAE. Evidence and Azamima are maintaining strong growth rates.
Among therapies containing plasma, immunoglobulin and albumin increased by 11.9% and 2.2%, respectively.
For albumin, we have set up a production line on top of our current plan and implemented cost containment measures in China. These measures will affect the added value.
In oncology, crizotinib is becoming very widespread.
It is generating the most revenue in Japan and is progressing towards approval and compensation in Europe.
The novel coronavirus disease is now occurring in 27 countries, and there is strong demand globally in the markets for both infected and non-infected individuals.
Since its release in 2022, we have sold over $1 billion worth of vaccines, and we are focusing on expanding efforts for this important vaccine.
From the next slide, I will explain the growth trends in detail year by year.
First, about new growth. Our growth and launch projects are primarily influenced by more than just Android security, primarily influenced by more than just Android security, primarily influenced by more than just Android security.
Additionally, due to the increase in net positives from other brands such as Gatex, Printerix, Acetrix, and Iclusex, the CR rate reached 4.5%.
With a contribution of approximately 17.19 billion yen, there was an actual impact resulting in a 9.8% increase.
Slide 7 shows the Ionian Bridge of the Corporate Prophet.
Regarding the positive gross profit contribution from Review Dynamics, we were able to recognize the impact of price increases through the implementation of the accounting process, with an adjustment of 29.9 billion yen.
Next, regarding OPEX. At the end of the prioritization of our pipeline, due to the resolution of many programs, the reduction in CO2 consumption tax, the reduction in energy, and the reduction in CER costs,
Oribe: We are also starting to see the benefits of our efficiency program on OPEX.
Overall, the crop ring profit increased from 10.1% to 16.3% of CR, including profits from Fx.
Next, I will explain the prophet.
In addition to the increase in colopy, the largest driver, an 86% increase, had a lower cost of load compared to last year.
エフィシエンシブプログラムに関する製造費は主に107.4ビリオン円となっています
Next, here is an update on FR24. We are providing management guidance.
Revenue and corporate profit are expected to increase with a one-character presentation where both are low. This is a curious change from the initial view of revenue and corporate profit.
The guidance on coronavirus measures has also decreased a bit as a CEO.
Update Focus now has a profit of 4.59 trillion yen, a core operating profit of 1.15 trillion yen, and a core EPS of 507 trillion yen.
We expect our core operating profit margin to be 25.1% now, which is a significant increase from last year.
Also, it has influenced this year's financial forecast, and it is now 153 yen, with no change in the euro forecast.
In the reported standards, the development budget was 34.4 billion yen, and the reported EPS was 7.5 billion yen.
Additionally, our free cash flow forecast range has increased to 55 billion yen to 65 billion yen. This is thanks to the uplift from Ko-op, which is expected to become part of the sales of Takeda Fever in the future. It is a joint venture in Japan.
With this performance and cash flow, we executed a purchase amount exceeding 10 billion yen.
Slide 10 shows the migration direction we predicted. We are making a profit of 11 billion yen. Mainly, compared to the previous forecast, it is reflected in the performance so far.
Based on past trends, we expect a shopping event exceeding 4 billion yen. Compared to our assumptions, we also anticipate a net positive impact from the remaining portfolio.
The effect also helps in our revised profit forecast.
The increase of over 10 billion yen will be achieved through product performance and R&D reductions. Initially, this was not in the previous forecast due to the impact of financial reforms affecting the value of prices.
of the reduction in R&D expense forecast
Approximately half is priced based on the post-trial access costs of TAC-611 and TAC-609, with the previously budgeted R&D costs and current operating costs. The remaining profit is priced based on the burden of expenses.
This concludes the Q3 presentation. We welcome any questions.
Thank you for watching.
Now, I would like to take questions from everyone.
Christoph Milano and R&D's Antti Plants will participate in this session. If you have any questions, please contact Weihoud.
If you are watching the English channel, please speak in English. If you are watching the Japanese channel, please speak in Japanese. If you are watching the original English, please speak in the original English.
I have two questions.
Negative impact on your focus
I would like to ask a question: Does measuring the selling price lead to an increase in the selling price?
And I
Regarding the R&D question, it might be a single issue, but is it a question about the treatment method of a specific clinic? As for other costs, is it unnecessary to explain the details? Well, that's all. Thank you very much.
Milano Furuta: Thank you, Steve. Milano, would you like to answer those questions?
Thank you for your hard work. The first question was about coke, but please understand that it is a bit technical.
Milano Furuta: As you know, there is an inter-company transaction. We are going to have some internal mark-ups.
And within the consolidation accounting process, there is a process of elimination markup.
Sometimes, through various functional currencies and high-level trade
Speaker Change: adjusting accounting accounts will be used to appropriately reflect our inventories.
These accounts are believed to have been significantly influenced by past activities.
Speaker Change: And then this time, we decided to implement an accounting process to recognize the accumulated foreign currency impact of the inventories.
And, as the first recognition of approximately 2.6 billion yen in the past,
In this series, a recognition amount of 3.9 billion yen was obtained. It is such a combination.
Recognizing the impact of name input
It was truly one-off.
I believe that it might be possible to influence automatically and systematically.
It is not this large number, but I recognize the average value over two years. This small number is usually recognized in Pool Destoria.
It won't build up any more.
Thank you.
And 6.11 and 6.09, this program is what we decided on.
It is thought that research results can be obtained based on such a program.
Based on the patient's request
We have decided to provide contact regarding these molecules. It is contact for patients who want it.
With this decision, we will make the payment for the post-trial access costs reserved in Q3.
It was ordered at a cost of approximately 1.6 billion yen for other operators.
This is part of this program, and part of this program,
Understood. Do you understand the issue with Antivia in the next question? I mean, growth and net, too, up, adjustment. I can't understand what it is.
That's right.
The adjustment of the gross net is necessary, and that adjustment is referred to as being due to the government's pricing.
There was an incorrect calculation in it.
It was held on October 10, 2010.
None of these things are materials. They are over 5 billion dollars and more than 2 years old.
I am thinking about these types of variances. Understood. Thank you. Thank you.
Now, I would like to move on to the next question.
Thank you for watching.
Can you hear me? Yes, I can hear you. Thank you. I have two questions from Puri in Yamaguchi Prefecture. The first question is about the change in management. My thought is, Christophe, I have heard that you are making efforts to elevate management to NTVO Cliff, around the 2030s.
And you have decided to change the management next year.
Speaker Change: Is there any kind of trigger from the fundamentals of the company?
For the next year, please tell me the trigger points you are considering at this point.
The second question is that this year's assets are becoming stronger, but that's because the assets themselves are becoming stronger. However, at the same time, the burden of the assets is becoming slightly higher.
Whether the flash of the opening project is slightly down depends on many factors, but at this point, what insights do you have about the trends of the next financial era? Thank you.
First, a question about the reasons for the change in management. Next, a question about the attractions in 2025. Mr. Christophe, please ask your question.
Thank you very much. Regarding the management change, I think 2026 is a good time, but 2032 is quite a long period.
Before a new product is launched,
Speaker Change: You don't want to make management change during a new product launch. You want to do that...
We are now announcing this transition period. This will give us time to find Julie's successor. He is,
Before launching this product, we believe that leadership in such a calm area is necessary.
Similarly
We believe that changes will occur due to our challenges.
For our assistant director, there is a 10-year limit.
It will be held in 2026.
I feel that it is good for the future board and the future CEO to be aligned. We have also been discussing these ideas, and therefore decided on June 26th.
Regarding the following question, 40% of the upside is with Vions, and 60% is with non-Vions. Don't forget the good dynamics with our glove form product. Of course, Vions is the big upside this year. The impact of Vions next year will be more limited.
At present, nuclear power generation accounts for 65% of the molecules, and there was also an impact from the alternating current.
Regarding the coming years, we have reached 65%. We have not reached the lowest point, but we are getting close. Therefore, we are confident about this fiscal year. And why is it the lowest point?
We can still see efficient impacts, but we expect them to gradually increase. And we hope to develop in the future.
Thank you
Thank you very much
Speaker Change: Thank you. Okay, we'd like to take the next question from T.D. Cowan, Mike Nedeljkovic. Mike, please unmute and ask your question.
Thank you for your questions, everyone. I have two questions about the Zeises Phinips Phase 3 Saraises Program.
Looking at the first record, how would you define success?
On the other hand, could you tell me the results that would give you confidence in your mind to participate in the exam? Also, could you tell me the results that you might be a little worried about? For example, should we focus on the primary endpoint of PASI75? Or should we criticize PASI100?
Next, I will ask about the timing. The first issue, the Cytinids Phase III tumor trial, Latitude 3002, exceeds the initial completion date on ClinicalTrials.gov by several months.
Is the final point of the 16 weeks being filmed? Or is the data being held at home? Is it closed until the lead-out of the long-term final point? Thank you.
Speaker Change: Thank you, Mike. Andy, would you like to take those two questions, please?
They might put a mic on Chris and Mike, and Christoph might also be able to ask questions.
I would like to hear your thoughts. Let's start with the second question first, Mike.
As I mentioned in November of the following year, the first two courses have been completed. The first course is a pivotal registration enabling course compared to the initial course. The first course was a 16-week course, but the course was completely closed, with one course closing in 52 weeks and the other in 62 weeks.
We maintain the accuracy of all aspects of this study and ensure that we have a safety database for one year. The direct answer to your question is that we do not have the data.
Do not predict interpol analysis
I am looking forward to seeing the data at the end of this year.
I will inform Christoph
As I mentioned earlier, the primary endpoint of the study is
I am using Passy 75. I am using Passy 75 for historical reasons.
primary endpoint
However, the research has a very strong influence. The point we are most interested in is PASI-100. Regarding psoriasis, it has been particularly popular among many researchers.
Also, the cell-cell IV agent, patients are now really focusing on clear skin. This is where we demonstrate our clear advantage.
Kristoff, if you have any other comments, I will respond. Thank you, Andy. Thank you, Mike. Our goal is to redefine what oral products are.
Since it is possible to conduct research to address safety and efficiency,
Significant efficacy, whether it is PASI-100 or PASI-75 compared to
what all have been able to deliver in the past
And it shows that it is closer to biological effects. This is what we believe. It is to replicate the role of oral segments and oral product training. This is our idea.
I am advancing the research while considering the research results.
I am grateful to the ruling party.
Thank you
Then, the next question is
This is Matsubara. Can you hear me? Yes, I can hear you. Thank you. I have two questions.
The following question is about EntaView.
Compared to last April, the increase in Enterbio is not apparent. I don't think there has been an increase, but my question is whether it was due to a reduction in transportation because of travel or changes due to the competitive environment.
The second point concerns the CEO.
I understand you have thought about the timing of...
Next, I would like to ask about the new CEO. What are the expectations for the new CEO? I understand that Julie has experience in American business and global operations. Therefore, each department of the company might grow. However, what is the growth strategy under her leadership? What are the expectations with her?
First, a question about NTVO's quarter-on-quarter growth. A question about changes in competitive features. Next, a question about expectations for JULIE. Mr. Christoph, please ask your question.
I would like to ask about the Q&A session, but we need to remove one of the effects mentioned by Mr. Milano.
Fading Up Shipment
We talked about the price adjustment of Glostunet. Removing that, yesterday's increase was 9.2%, and the future increase will be higher.
Regarding the holiday between Christmas and New Year's Eve, it also affected the end of this year, but it also affected the end of this year.
Speaker Change: We are at a bit more than 9%, so a bit short of our 11% new guidance and forecast, but we'll see how things are evolving. We are quite pleased with the response that we are seeing on the pend launch.
Speaker Change: Quarter to quarter, we have seen a 30% increase of prescribers, number of prescribers prescribing the drug.
And about our access as well
I've improved significantly, but it's not
It's not the highest yet. We currently have over 70% access. We want to achieve over 90% access. So, I still need to do a little work there.
Overall, the pattern remains unchanged, but Antiview maintains a cutting-edge position, especially regarding the initial biologic treatment.
Speaker Change: We have lost some market share in the second and third line, but we are growing faster than the market, so we are pleased with the performance. And obviously, as we discussed in the past, the launch of the pen is very much important in the life cycle of Antivio.
Regarding the second question, I would like to emphasize Yudi's incorporation of American business practices.
until we have a successor.
I look forward to working with Julie's junior colleague. I can't focus on that industry, but when Julie's junior colleague is around, I can focus on the transaction and gradually take the lead. Julie's junior colleague has been part of T.E.T. since 2019 and has gradually become helpful.
All our strategies, directions, she manages our USB data.
Speaker Change: 50% of our total revenue, so directionally, she has been very much in favor and supportive of our strategy, so don't expect major change of direction, but
I believe we will be able to respond to such questions starting in 2026. Thank you.
Thank you very much.
Matsubara: Thank you very much, Matsubara-san. So, for the next question, I'd like to call on Tony Ren from Macquarie. Tony, please unmute and ask your question.
I would like to ask about the Q&A. The first question is about the adjustment of Growth to Net Chew-Up.
As Milano said,
We are conducting sales and interviews with the U.S. government.
The above is a question about Antibio, and the next question is about the price agreement of the American IRA.
MGM's former Tesla is now officially joining the price competition above $15, and it is said that they are not joining the price competition for 2025.
What kind of impact will it have?
Please subscribe to the channel.
Regarding the following question, I would like to ask for details about the 11% impact.
Regarding Antivio, about the year that was announced earlier, please also tell us about Milan. Next, regarding the question about IRA, please ask Christoph about the impact of JASO with Tesla's cooperation.
Hello, Tony. This adjustment is now done online.
I am sharing this information via SMS in relation to the enterprise of sash-free covers.
We did not anticipate this impact, but we did not predict it.
When we developed this 11 percent guidance
Achieving 11% at this price might be a bit difficult, but if we overcome this impact, it generally aligns with our internal plan.
Matsubara: And for the IRA, yes, so Tesla is among the products selected in this second wave.
Matsubara: It reinforces, it doesn't change our clinical development plan, it just reinforces the fact that
I believe that they have very different profiles regarding efficacy.
Therefore, we can truly differentiate ourselves from previous all products. The IRA does not change this strategy. We emphasize the need to differentiate ourselves and believe that it exists for efficacy and safety.
We must compete with products like Tesla, but as I mentioned earlier, we will compete with Ducla. To compete with Ducla, we will continue to conduct head tread studies.
Thank you
Thank you very much.
Thank you for watching.
Thank you very much. Now, the next
Morgan Stanley Mr./Ms. Muraoka
Please unmute and ask your question.
Good evening, this is Morgan Stanley. Can you hear me? Yes, I can hear you. Thank you.
My first question is
I will talk about the next fiscal year.
How does the next year look?
From 1,100 to 250 basis points
Regarding the improvement of the opening margin, there is an explanation about the standard points of 100 to 250 points for the usual opening margin improvement that you always mentioned.
Do you think you will be able to pay the taxes for the next year? Can you expect that? Another question is, what do you think about taxes?
Joker
This year, we conducted two reductions, but the load remained the same. Although the load was the same, if the open margin improves in the next fiscal year, based on progressive policies...
Is it possible to increase funds? Is it possible to be certain about the increase of funds? This is my first question. The next question is about NTVO.
Biosimilar
Alphatecteva
Recently, I started the Phase 3 program. Many people are participating.
Thank you for watching today.
Timing-wise
You always say that it will be fine until 2030. Maybe that's still correct.
I'm thinking about various things.
If you really focus on the timing
Nice, delicious
Is it okay from the 2030s to the 2032s?
It's about the adoption of biosimulation.
Can you help organize my thoughts?
We are expecting an improvement in margins. Also, I would like to hear your thoughts on next year's dividends. I would like to ask a question to Milan.
Next, I would like to ask about the second question regarding the change in entry timing by Antivia.
Good evening, Mr./Ms. Muraoka. Thank you for your question.
Shoot match
First, about OP marching: improvement of 100-250 basis points
This is the basic idea.
23.4%
Regarding the reference values we are considering for the end of this year, based on the latest information.
First knowledge
We have learned that an open margin of 25.1% is planned. As a result, we are now combining taxes for the next fiscal year. We will incorporate detailed insights on this and make an official announcement in May.
Improving the core open margin is something we always want to do. This is always a management policy.
About dividends
It's surprising that this strain is good.
And February
The funding payment is different from the recently announced share buyback. We hope to keep it steady and progressive in the long term, and to maintain or increase the level.
Thank you!
At this point, it is very difficult to comment, but I don't think there is a need to reduce the burden.
Thank you for watching.
Thank you
Thank you
What happened in the year 2013 of 2013
The patent released in 2032 was quite intense. I will investigate what happened regarding the judgment surrounding this patent.
Control process
Ugh,
Thank you in advance.
Showa
Matsubara: Regarding the strength of our pattern, the optimistic ones will receive forecasts for 2032. The optimistic ones will receive forecasts for beyond 2030. The way we explain this situation is always the same. We will receive forecasts for 2032. We believe in our set of patterns, but other patterns may not be the same. There are no changes to our forecasts, especially in America, where there are three Iostiminas. In Europe, a little...
There are various LEGO systems, but our position is very clear for the United States.
Thank you very much. Yes, thank you very much.
A question from J.B. Morgan Wakao.
if you say so
This is Wakao from J.P. Morgan
There are two questions from J.P. Morgan. First, about the share buyback. Could you explain the background of the decision regarding the improvement of the share buyback? Is it because the share buyback price is very low? What is the message of this decision?
Please tell me the timing of the phase 3 data readout for TAK-861 and TAK-279 regarding sargolow and forcegolow.
Thank you, Waka-san. First, regarding the mindset after the buyback. Then, I would like to ask a question to Milano-san. Next, I would like to ask a question to Andy-san. Also, could you provide detailed information about the timing of Phase 3 for TEC-861 and TEC-279?
I'm sorry, Mr. Akousan. As you are aware, we updated our fund allocation policy two years ago.
Set up this framework to ensure that investments continue to perform well.
Credit rating base leader to primary pure Ford capture's location investment foreclosure
and then show the return.
So with the current performance
It is believed that this year we will be able to revive more taxes than the currency tax we planned.
Matsubara: and we have been allocating this cash and then, as you have seen, we have done a few
Matsubara: the business development deals very selectively, and then we are kind of adding in a pipeline, and we are now focusing on developing these in a late stage pipeline. And then the
After that, regarding the share of the regression, we thought it was a good time to appropriately buy back shares at this upper part. In this way, by upgrading the guidance, we divided the share buyback into approximately half increments of operational activity.
We believe we should do it. We believe we should do it faithfully to our financial export policy.
This is Andy Walkawson. I would like to inform you about the research period. Since the R&D day, three readouts have been announced for this year: Luspatercept, Obeplectin, and Zazositinib. No specific timing has been announced. We expect topline data for Obeplectin and Luspatercept in the first half of this year. We are very excited.
You participated in a study on type 1 narcolepsy. The number of participants in that study exceeded our predicted value. Although we have not provided exact data, we hope to obtain the data by the end of 2025. And, in Zazma Citynev, there are two basic pieces of data.
As I mentioned earlier, the enrollment was completed by measuring the number of participants up to November last year. We have a third study ongoing. These studies are for further ensuring safety. That study is continuing enrollment. We can perform calculations from the first two major studies we were expecting.
As Mr. Christoph mentioned earlier, we plan to start head-to-head research to counter the Dokurabis Citynev of the Meiji era. This research is not part of our original filing. Our hope is to be able to publish the data from this research.
Thank you very much.
Thank you very much. Now, I would like to move on to the next question.
[inaudible]
Hello, this is Wata from SNBC Nico. Can you hear my voice? Yes, thank you. Just one question.
Price negotiation
August 2020
I think it includes an entire view, but do you think it includes an entire view?
Is it possible to include NTV in the IRA for 2028? Please comment.
There is a possibility. That's why we kept the peak range from 7.5 to 9. Initially, we had this range.
We had Japan. We had CRL, but we had Japan. However, we maintained it to keep the scope and the potential for IRA input.
Because we can move towards the future, that is a possibility we are considering.
Thank you very much. It's clear. Next, we have Mr. Hashiguchi from Taiwan Securities.
I said it's Oi Tree, please contact America.
Tell me how changes in the business environment are affecting your business. Your ideas are not limited to the agriculture industry, but to various industries. Recently, various new policies have been announced.
Seen by various players, due to such changes
I believe it can impact your business.
For example, PBM may be redesigned, which could potentially affect its price. Thank you.
I would like to ask about Chris Stop's question.
Matsubara: Yes, there will be some changes in the U.S. environment, healthcare is one of the topics that any administration will focus on.
I would like to move forward together with the IRA.
It is considered to be one of the key points.
Matsubara: pricing system will carry on for now. It might be adjusted in the future. We will see. That's something to take into consideration. On the other hand, keep in mind that as part of the IRAs, there was also
For many cut patients, it is a positive outer pocket cut for many patients, especially for pneumonia patients.
We believe in a country that stays in America.
[inaudible]
The new innovation in medicine is the country that can recognize the fastest and highest level of innovation and gain leadership in innovation. This is especially important when considering the launch of new products. However, the environment for innovation in medicine has changed just like in other countries. Another element we are, of course, observing is more geopolitical.
Are you considering whether it leads to the effects of medical drugs?
Of course, Takeda has a manufacturing network concentrated in Japan, Singapore, Europe, and America.
Four Seas must counter Free Trade.
Thank you very much
Well then, let's take a look.
Thank you very much. Now, the next question is from Mr. Sogi from Bernstein.
Please, I humbly ask for your favor.
Speaker Change: Thank you. Can you hear me? This is Miki from Bernstein. Yes, we can hear you. Great. Thank you very much. I have two questions. First of all, Antivio, we recently saw a report saying that Antivio's listing price was increased by 8%. So could you tell me, that listing price increased, what is the impact to the actual net price?
I would like to ask questions about the actual online sales, but is there any impact related to government payments? The impact of government payments is very high, but the impact of government payments is very high. This is the first question. The next question is about R&D expenses.
Trialed Drug
We are reducing costs and other expenses, but the expenses seem to be delayed more than expected. Do you plan to increase expenses over the next four months? Do you plan to increase expenses?
Thank you for watching.
Milano Furuta: Thank you, Miki. So the first question on Antivio price increase, I'd like to ask Christophe to comment, and then the second question on the R&D budget and progress towards the four-year forecast. Milano, if you could please comment on that.
Speaker Change: Thank you, Miki. Yeah, this price increase is more a reflection of the rebate mechanism that is...
In order to compete in the American market, it is necessary to provide rebates. This is the mechanism. There is no need to see an increase in net prices.
and government price is calculated on the net price.
I really think it's the effect of the rebate mechanism, and I believe this method should be fixed for us.
Regarding the recovery of PBM, there is still much discussion going on, and we are trying to replace the mechanism for this recovery.
Thank you very much
Hello, Sugi. Thank you for your question about NR&E.
Spending
Therefore, let me explain.
Speaker Change: We are not seeing any slowness in the operation. Actually, we are accelerating.
We are gearing up the R&D operations and development.
We are advancing research on these developments.
Operational Efficiency Mindset
The Extensy Program we held is,
beginning of this fiscal year
Fourth quarter, we always have that little bit of seasonality.
R&D expenses have been increasing for four months, and in addition, we plan to start a two-month program.
We are using the Meza Gitaban for PCR tests and ITP tests. Through these two new programs and clinical trials, we hope to improve the condition of the indispensable.
Thank you very much. Very clear. Thank you.
Due to time constraints, we will make the next question the last one.
Thank you
Thank you very much
Thank you very much.
This is a general question by Doctor Plump.
It has begun to affect the industry, and the impact has remained for a long time, with the industry raising a strong voice about nuclear power generation.
Do you think this will affect your pipeline strategy? What I'm particularly interested in is
Zasotideip, lifecycle management, extra indication strategy, can you comment on something interesting about this topic?
That's my first question. The second question is, Mr. Weber, thank you for your help. Is Julie Kim planning to stop in Tokyo?
My second question is, are there any conditions for her to become CEO?
Speaker Change: Thank you, Sakai-san. So, the first question to Andy on IRA impact on pipeline strategy, specifically on Jazo-Sitonib, and the second question to Christophe on Julie, where she'll be located.
Ending the question with a great question, thank you very much. It cannot be said that the IRA cannot have a national impact.
Technical strategies, of course, influence technical strategies.
The strategy I worked on for our organization
We believe that we can maintain the IRA in the sense that we are always focused on innovation and high medical needs.
To seek competitiveness in the world of IRA, these two characteristics are necessary. Each company needs to focus on innovation and high medical demand.
Regarding Azov-Citynev, yes, Ira influences and affects how we strategically approach it.
Shares Austic New
This is a potential molecule for many indicators.
Historically speaking, companies might have adopted such programs more strategically and cyclically, but we are incorporating them in parallel. As you know, today we have four continuous indicators.
We are advancing research on the coronavirus and patients with the coronavirus. In the coming months, we would like to share more information about our strategies.
Sorry for the Q&A.
Speaker Change: I started a few years ago to be based in Tokyo.
The usual places are Tokyo and Barstow, and I am between these two places, but I want to convey that our global hub is a very important place for Barstow. My location today is Tokyo and Barstow. Julie is very proud to have these places, Tokyo and Barstow. These two places are part of our agreement.
Hey
Thank you. Thank you very much.
With this, we will conclude today's webinar. Thank you for taking the time to join us today despite your busy schedule.