Message from our CEO | Takeda 2025 Annual Integrated Report

The external environment is becoming more complex and challenging. Geopolitical and regulatory shifts, technology advances, and pressure on healthcare budgets in many countries worldwide are just some of the factors currently affecting the pharmaceutical industry. Within this context, we remain vigilant and focused on responding with strategies to drive sustainable business growth and add value for society.

We publish this report each year to provide a comprehensive view into these strategies. Our approach to value creation is grounded in our corporate philosophy, aimed at benefiting patients, our people, the planet, and our shareholders. In this report, we set out examples that bring to life the values that have guided our organization to success for more than 240 years.

We are enhancing efficiency, growth, and resilience across our organization, using a values-based decision-making framework: Patient-Trust-Reputation-Business (PTRB), in that order. This ensures our decisions prioritize patients, build societal trust, reinforce our reputation, and support sustainable business. This framework also helps us advance and deliver innovative medicines from discovery to patients quickly and safely, and is strengthened by the diversity of our people and the inclusion of a wide range of stakeholder voices in our decision-making.

In this past fiscal year, we achieved strong business momentum, advancing our portfolio of Growth & Launch Products and focusing on innovation while driving efficiency. Within this portfolio, ENTYVIO® (vedolizumab), FRUZAQLA® (fruquintinib), and immunoglobulin products are key growth drivers. Each performed strongly in FY2024. The launch of the Entyvio® Pen in the U.S. strengthened demand for Entyvio®, now with over 10 years of unique brand equity in a highly competitive market. In our oncology portfolio, Fruzaqla® launched or was approved in more than 20 countries, and our immunoglobulin products continued to see strong demand globally, coupled with steady supplies through expanded manufacturing capacity.

The positive momentum in our late-stage pipeline, enhanced by a combination of in-house discovery and targeted partnerships and acquisitions, is laying the foundation for long-term sustainable growth. Our late-stage programs continue to advance, and we anticipate filing for approval of three programs during FY2025–2026. An additional five indications are expected to file in FY2027–2029, underscoring the opportunities to bring innovative new medicines to patients.

Pipeline development requires higher investment in the later stages. We have closely managed this increased expenditure through rigorous R&D prioritization and a focus on efficient resource allocation and processes. Our multi-year efficiency program progressed as planned in FY2024 and is contributing to our goal of returning our Core Operating Profit margin back to low-to-mid-30s%, balanced with the necessary increase in R&D, data, digital, and technology (DD&T), and new product launch investment.

At the same time, we are applying DD&T throughout our value chain, encompassing R&D, manufacturing, and commercial operations, leading to efficiency and productivity gains in areas such as research protocol optimization, quality control, manufacturing efficiency, and personalized interactions with healthcare providers. More fundamentally, we’re upskilling our people and making our organization ready for the future.

As announced in January 2025, I will be retiring from Takeda in June 2026. After a very thorough, multi-year succession planning process, Julie Kim, currently President of our U.S. Business Unit and U.S. Country Head, has been unanimously chosen by the Board of Directors to lead Takeda from there on. I have worked closely with Julie for the past six years and cannot think of a better leader for the role. Julie has the experience, grit, and drive needed to realize the full potential of the new product launches expected from the second half of 2026 onwards. I have no doubt that her total commitment to patients, our people, our values, and our purpose will propel Takeda to further long-term success.

I am proud of our transformation into a competitive, global R&D-driven biopharmaceutical company and confident that we have a sustainable business strategy that will serve patients, society, and shareholders well in the years and decades ahead.