On Thursday, Japan’s drugmaker Takeda Pharmaceutical Company Limited ( TAK ) announced a restructuring after the company reported a fiscal year 2023 net profit of 144 billion yen (around $954 million), down 54.6% Y/Y.

Core net profit fell 12.6% (down 15% at constant currency) to 756.8 billion yen.

Takeda said it will incur restructuring costs of about 140 billion yen in fiscal year 2024 as part of a plan to optimize its workforce, cut costs, and strengthen technology. 

Revenue was 4.26 trillion (around $28.19 billion), up 5.9% (up 1.5% at constant currency). The increase is primarily attributable to favorable foreign exchange rates and growth from the business momentum of PlasmaDerived Therapies (PDT) Immunology, Gastroenterology (GI), Rare Diseases, and Oncology, offset by a decrease in Neuroscience. 

GI revenue was 1.22 trillion yen, up 11.1% (+4.7% at constant currency).

PDT Immunology revenue reached 818.6 billion yen, up 20.7% and 14.4% on constant currency.

Neuroscience revenue reached 627.0 billion yen, down 1.7% (7.8% on constant currency).

Takeda reported the fiscal year 2023 operating profit of 214.1 billion yen, down 56.4%, and core operating profit of 1.05 trillion yen, down 11.2% (-13.3% on constant currency)

In a statement, Chief Executive Christophe Weber listed three new approvals by the U.S. Food and Drug Association as highlights in an “otherwise challenging year.”

“In alignment with our progressive dividend policy and reflecting confidence in our long-term growth outlook and cash flow generation, we are proposing a dividend increase for a second consecutive year from 188 yen per share to 196 yen per share.

Read Next: FDA Approves Takeda’s Eohilia As First Oral Treatment For Inflammed Esophagus.

Guidance: Takeda forecasts that its operating profit will reach 225 billion yen in the current fiscal year 2024.

“Furthermore, beginning in FY2024 we are implementing a multi-year program to improve our efficiency through organizational agility, capital savings and leveraging our capabilities in data, digital and technology. In addition to revenue growth from our Growth & Launch Products and significant decline in generic exposure, we expect this program will help drive Core Operating Margin improvement of 100 – 250 basis points per year from FY2025.”

Takeda forecast net income of 58 billion yen for the 12 months ending in March 2025. Sales are expected to reach 4.35 trillion yen during the year.

Also Read: Good News For Sleep Disorder Patients – Takeda’s Therapy Shows Promise In Mid-Stage Study.

Price Action: TAK shares are up 2.60% at $13.40 at last check Thursday.