Takeda is launching a broad, multiyear restructuring, alongside a handful of pipeline cuts, CEO Christophe Weber announced Thursday.
Starting this year, Takeda said it will simplify the structure of some divisions, “rigorously prioritize its R&D pipeline,” and “optimize its workforce.” Executives added that Takeda will also invest in data, digital and technology, and find ways to make its supply chain and vendor management processes more efficient.
Details were sparse, with the company adding that specific revisions and the timing of those changes will be decided in the future.
“We are simplifying our business by removing layers, broadening roles and refining operating models to improve our agility across the enterprise,” Weber said Thursday during the company’s earnings call.
Due to the restructuring, Takeda expects to incur one-time restructuring expenses of 140 billion Japanese yen ($898 million) this year.
“We believe that efficiencies gained from the program will enable us to allocate resources toward our late-stage pipeline and new product launches and offset inflation headwinds,” Weber said.
CAR-NK pivot
Takeda also announced that it is discontinuing Phase 2 development of its CAR-NK TAK-007 therapy in blood cancer as it pivots the candidate to autoimmune disease.
“Relative to CAR-T therapy, our CAR-NK platform has a favorable safety profile and an off-the-shelf manufacturing process that will deliver therapy on-demand at a significantly lower cost of goods,” R&D chief Andy Plump said on the call. “And while a very competitive area for autologous cell therapies, there are few allogeneic programs in the mix.”
The pivot comes just a few months after Takeda abandoned a trio of CAR-T programs, among other pipeline cuts across studies in Phases 1 to 3.
Mid-stage oncology cuts
TAK-007 is Takeda’s third Phase 2 oncology program to be culled in recent months. The company on Thursday revealed that it’s also cutting its small molecule subasumstat in “multiple cancers.”
“These decisions are not easy, but they are part of the journey of innovative drug discovery,” Weber said.
In February, the company announced it would drop its innate immunity enhancer modakafusp alfa, which was being studied in a Phase 2 multiple myeloma program. The drug was also discontinued from a Phase 1 program in solid tumors.
“Let me assure you that Takeda is fully committed to oncology as a key component of our strategy and long-term growth, and [it] remains a core therapeutic area of our business,” Plump told investors. “Going forward, we will explore a broad range of modalities and mechanisms as we seek to advance the most promising science and ultimately address the highest areas of patient need.”
Editor’s Note: This story has been updated to include additional information from Takeda’s quarterly earnings call.