Update of the Financial Impact of the European Commission’s Decision to Release Takeda from Commitment to Divest Shire’s Pipeline Compound SHP647

Osaka, JAPAN, June 22, 2020 – Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) (“Takeda”) today announced the anticipated financial impact of the European Commission’s (EC) decision to release Takeda from a commitment to divest Shire’s pipeline compound SHP647 and certain associated rights (“SHP647”) on its Consolidated Statements of Profit or Loss for the fiscal year ending March 31, 2021. On May 28, 2020 the EC released Takeda from the obligation to divest SHP647, a commitment that was provided by Takeda to secure regulatory clearance of its acquisition of Shire plc (“Shire”). At the time Takeda announced this decision by the EC in its press release, “European Commission Releases Takeda from Commitment to Divest Shire’s Pipeline Compound SHP647”, the resulting financial impact was unavailable. The update of the anticipated financial impact is as follows.

As a result of the EC’s decision to release Takeda from the obligation to divest SHP647, assets and liabilities related to SHP647 will cease to be classified as held for sale on Takeda’s Consolidated Statements of Financial Position as of June 30, 2020. Additionally, Takeda will reassess and update its previously recognized liabilities to reflect expected future costs related to SHP647, such as program termination costs. As a result, Takeda estimates that it will recognize a one-time net gain of approximately 564 million USD in Reported Operating Profit and a one-time net gain of approximately 400 million USD in Reported Net Profit attributable to owners of the Company for the three-month period ending June 30, 2020. Takeda will update its forecast for the fiscal year ending March 31, 2021 at the appropriate timing.

The net gain as a result of the EC’s decision to release Takeda from the obligation to divest SHP647 will be booked as Other Operating Income. Since it will be a one-time gain related to the Shire acquisition, while it will impact reported profit, it will not impact Core Operating Profit or Core Net Profit.


Media Contacts:

Japanese Media                                   
Kazumi Kobayashi                               
[email protected]             
+81 (0) 3-3278-2095                           

Media outside Japan
Tsuyoshi Tada
[email protected]
+1 (617) 551-2933


About Takeda Pharmaceutical Company Limited
Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to bringing Better Health and a Brighter Future to patients by translating science into highly-innovative medicines. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Diseases, Neuroscience, and Gastroenterology (GI). We also make targeted R&D investments in Plasma-Derived Therapies and Vaccines. We are focusing on developing highly innovative medicines that contribute to making a difference in people's lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Our employees are committed to improving quality of life for patients and to working with our partners in health care in approximately 80 countries.
For more information, visit https://www.takeda.com.

Important Notice
For the purposes of this notice, “press release” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited (“Takeda”) regarding this release. This press release (including any oral briefing and any question-and-answer in connection with it) is not intended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the public by means of this press release. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. This press release is being given (together with any further information which may be provided to the recipient) on the condition that it is for use by the recipient for information purposes only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
The companies in which Takeda directly and indirectly owns investments are separate entities. In this press release, “Takeda” is sometimes used for convenience where references are made to Takeda and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

Forward-Looking Statements
This press release and any materials distributed in connection with this press release may contain forward-looking statements, beliefs or opinions regarding Takeda’s future business, future position and results of operations, including estimates, forecasts, targets and plans for Takeda. Without limitation, forward-looking statements often include words such as “targets”, “plans”, “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “ensures”, “will”, “may”, “should”, “would”, “could” “anticipates”, “estimates”, “projects” or similar expressions or the negative thereof. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those expressed or implied by the forward-looking statements: the economic circumstances surrounding Takeda’s global business, including general economic conditions in Japan and the United States; competitive pressures and developments; changes to applicable laws and regulations; the success of or failure of product development programs; decisions of regulatory authorities and the timing thereof; fluctuations in interest and currency exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of health crises, like the novel coronavirus pandemic, on Takeda and its customers and suppliers, including foreign governments in countries in which Takeda operates, or on other facets of its business; the timing and impact of post-merger integration efforts with acquired companies; the ability to divest assets that are not core to Takeda’s operations and the timing of any such divestment(s); and other factors identified in Takeda’s most recent Annual Report on Form 20-F and Takeda’s other reports filed with the U.S. Securities and Exchange Commission, available on Takeda’s website at: https://www.takeda.com/investors/reports/sec-filings/ or at www.sec.gov. Takeda does not undertake to update any of the forward-looking statements contained in this press release or any other forward-looking statements it may make, except as required by law or stock exchange rule. Past performance is not an indicator of future results and the results or statements of Takeda in this press release may not be indicative of, and are not an estimate, forecast, guarantee or projection of Takeda’s future results.