Takeda Pharmaceutical Company Limited (NYSE:TAK) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 05:30 am ET

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Takeda Pharmaceutical Company Limited (NYSE:TAK) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the conference call of Takeda Pharmaceutical Company Limited. [Operator Instructions]

Now we start the conference. Mr. Okubo, please go ahead.

Executive
Takashi Okubo

Thank you very much for coming to join in FY 2020 Q1 earnings announcement. I'd like to serve as a facilitator today, Okubo, Global IR Head. In this conference call, 1995 US Litigation Reform Act, the forward-looking statement and related information will be discussed. And the results of the discussions may differ substantially from the actual results and the latest From 20-F and other SEC submitted documents described all those potential factors.

And in Page 2 of today's presentations, there are important notice described. Please also refer to that page. And we have presenters and the responders to your questions. So, we have Christophe Weber, President and CEO; Chief Financial Officer, Costa Saroukos; R&D President, Andrew Plump; and Japan Pharma Business Unit President, Masato Iwasaki; and PDT Business Unit President, Julie Kim. They are participating on this earnings call.

First, CEO, Christophe will discuss the overview of the results and then Andrew will cover R&D situations and followed by Costa, CFO, covering the financial aspects. After those presentations, we will have the questions and answers. So, please be prepared with the presentation materials.

Christophe?

Executive
Christophe Weber

Sorry. Hello, Takashi. Thank you, Takashi. Hello, everyone. Great pleasure to be with you today.

I will go to Slide number 4, which summarize the situation. And I would say that considering the COVID-19 circumstances, the first quarter of our fiscal year 2020 has been positive. You will see that our revenue growth has been strong, especially our core business, growing 6%. Our key 14 global brand growing 20%. So I think it demonstrate that our overall portfolio is resilient to the coronavirus situation. Very strong growth also of our PDT business growing plus 19%.

On a reported basis, we are declining, but that's totally explained by the divestment on one side and also the foreign exchange. So, on the revenue side, for us it's positive. The only product which has been impacted by the coronavirus crisis has been VYVANSE. We can come back to that later.

On the R&D and pipeline development, we are progressing. We don't want to slow down our momentum and we are planning to file seven NDA this year, which is quite remarkable. And you might have seen that we just got a breakthrough designation for pevonedistat this week. And the last element which I think is very satisfying is that our margin for the quarter, our core operating profit margin has been 34.7% that translate into cash flow and we are able to further the leverage in spite of the half year dividend payment. So, very positive Q1 as far as we can see.

We -- the integration is continuing to progress, I mean, as you know, by December 2019, we are operating as One Takeda. So, in terms of the people in the organization, we are operating as one company, which also allow us