Takeda Reports 171.6% Jump in First-Half Profit, Driven by Yen Weakness

Takeda Pharmaceutical reported a significant surge in first-half profits, with net income climbing 171.6% year-over-year to ¥305.6 billion (approximately $2.07 billion). The substantial increase was largely attributed to the favorable impact of a weaker Japanese yen on the company’s earnings.

Revenue for the six-month period ending September 30th, 2026, reached ¥2.407 trillion, an 8.4% increase compared to the same period last year. However, stripping out the currency effect, revenue decreased by 1.0% on a constant exchange rate (CER) basis, indicating that underlying sales growth was more subdued. Core revenue reached ¥2.3082 trillion, a 9.1% increase on an AER basis, but a 0.5% decrease on a CER basis. The company highlighted strong performance in its key business areas – gastroenterology, rare diseases, plasma-derived therapies, oncology, vaccines, and neuroscience – which accounted for the majority of sales.

Several key products drove revenue growth. Entyvio, a treatment for ulcerative colitis and Crohn's disease, saw sales rise by 13.0% on an AER basis. Sales of Gattex/Revestive, a treatment for short bowel syndrome, increased by 11.5% AER, while Takecab/Vocinti, an acid-related disease treatment, saw a 10.3% AER increase. New products, including Dengvaxia and Eohilia, contributed 4% to core revenue, showing a 17.3% CER growth. The company also saw positive momentum with its newly approved migraine medication, QDENGA, in the Latin American markets.

Operating profit for the period increased by 60.4% AER to ¥4.067 billion, while financial losses totaled ¥880 billion, an increase of 22.0% AER. The company attributed the rise in financial losses to interest expenses related to newly issued dollar-denominated bonds and lease liabilities. Despite these factors, the significant increase in revenue, coupled with cost management, drove the overall profit increase. Research and development expenses also rose, increasing by 10.9% AER to ¥3.386 billion, driven by late-stage pipeline investments, including arcotatug tavatecan, elritercept, and TAK-928.

Looking at the balance sheet, total assets decreased to ¥15.2715 trillion, while total liabilities fell to ¥7.8543 trillion. The company did not declare a dividend in this reporting period. The results reflect Takeda's ongoing strategic shift towards innovation-led growth, bolstered by favorable currency exchange rates, but underlying sales performance shows modest growth when adjusted for these effects.