Takeda's First Female CEO Outlines Strategy for Growth Rebound and Major Product Launches

Stock News06-25

The new Chief Executive Officer of Takeda Pharmaceutical Co Ltd (TAK.US), Julie Kim, has stated the company aims to return to growth within two to three years as it prepares to launch a series of new products. Speaking at her first press conference since taking the CEO role this week, Kim said the company is targeting a return on equity of at least 5% during that period.

Takeda Pharmaceutical Co Ltd plans to introduce three major new products within the next 12 months. These include Oveporexton for treating narcolepsy and Zasocitinib for treating psoriasis. The company will also advance another five drug candidates that are in the late stages of development. This strategy is designed to ensure robust development in its core therapeutic and business areas, which contribute more than half of the company's revenue.

According to Kim, the company also plans to leverage artificial intelligence technology, particularly in the research and development field, to accelerate preclinical research processes and improve decision-making. This technology has already helped to speed up drug target identification, reducing a process that previously took about six months down to just two weeks.

"Financially, if we achieve all these business goals, we will be able to return to growth, although the level of growth will not be high," she said.

The New Leadership

Kim is the first female leader of this 245-year-old Japanese pharmaceutical company and is a rare foreigner among the top executives of major corporations in the country. Born in Seoul and raised in the United States, she joined Takeda Pharmaceutical Co Ltd seven years ago following its acquisition of Shire PLC. She initially led its plasma-derived therapies business and later took charge of its U.S. operations. She succeeds Christophe Weber, the company's first non-Japanese leader, who served as CEO for over a decade. Kim indicated that she plans for a tenure of similar length.

"Assuming I continue to perform well in my job and shareholders vote for me every year, the board has asked me to commit to at least a 10-year term," she said.

Strategic Focus

Kim brings a distinctly U.S.-centric perspective to Takeda, with the United States being the company's largest source of revenue. Miki Sogi, a senior analyst at Sanford C Bernstein Japan KK, commented, "Her top priority appears to be maximizing the value of the company's business in the U.S. This marks a significant shift from Christophe's more balanced approach, which gave relatively equal weight to Europe, emerging markets, and Japan."

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