Takeda Announces R&D Restructuring
Takeda Pharmaceutical Company Limited has announced plans to accelerate the research & development (R&D) organization transformation by refocusing on three key therapeutic areas : oncology, gastroenterology, and central nervous system, plus vaccines, and concentrating R&D activities in Japan and the US. Takeda will also optimize its R&D sites globally to build its R&D organization and pipeline.
To accomplish this R&D transformation, Takeda will focus on enhancing operational efficiency and ensuring the needed capabilities are in the right areas, which will include evaluating the need to reduce and concentrate its R&D presence and optimize the interfaces between R&D, business, and corporate functions. The number of impacted positions may fluctuate depending on the progress of implementing these programs and the transformation.
Takeda estimates one-time implementation costs for the transformation of approximately 75 billion yen ($742 million) and the annual cost savings of approximately 18 billion yen ($178 million) after the implementation. Takeda intends to re-invest these savings into an innovative pipeline over time. FY 2016 implementation costs of up to 25 billion yen ($247 million) are covered within the general placeholder budget for efficiency initiatives in the consolidated financial forecast for FY 2016 announced on May 10, with the remainder of 50 billion yen ($494 million) mostly in FY 2017. These costs and timing might be updated to reflect the results of the negotiations with the labor unions, partners, and other stakeholders, and options taken by employees.
Source: Takeda Pharmaceutical