Takeda is launching a broad, multiyear restructuring, CEO Christophe Weber announced on Thursday. The company also said it is shifting its Phase 2 CAR-NK therapy from oncology to autoimmune diseases.
Starting this year, Takeda will simplify the structure of some divisions, “rigorously prioritize its R&D pipeline,” and “optimize its workforce,” it said. Executives added that Takeda will also invest in data, digital and technology, and find ways to make its supply chain and vendor management processes more efficient.
But details were sparse, with the company adding that specific changes and the timing of those changes will be decided in the future.
“We are simplifying our business by removing layers, broadening roles and refining operating models to improve our agility across the enterprise,” Weber said Thursday on the company’s fiscal year 2023 earnings call.
Because of the restructuring, Takeda expects to incur one-time restructuring expenses of 140 billion Japanese yen ($898 million) this year.
“We believe that efficiencies gained from the program will enable us to allocate resources toward our late-stage pipeline and new product launches and offset inflation headwinds,” Weber said.
“The program aims to improve growth through continued advancement of Takeda’s Growth & Launch Products and progressing the company’s robust late-stage pipeline to deliver innovative therapies for patients, while helping drive Core Operating Profit margin improvement target of low- to mid-30%,” the company added in a statement.
CAR-NK pivot
Takeda also announced that it is discontinuing the Phase 2 development of its CAR-NK TAK-007 therapy in blood cancer as it pivots the candidate to autoimmune disease.
“Relative to CAR-T therapy, our CAR-NK platform has a favorable safety profile and an off-the-shelf manufacturing process that will deliver therapy on-demand at a significantly lower cost of goods,” R&D chief Andy Plump said on the earnings call. “And while a very competitive area for autologous cell therapies, there are few allogeneic programs in the mix.”
The pivot comes just a few months after Takeda abandoned a trio of CAR-T programs among other pipeline cuts across Phases 1 to 3.