Takeda, a Japanese drug manufacturer, is facing financial challenges that have resulted in major job cuts at its European headquarters in Opfikon, Switzerland. Despite being little known in the country, Takeda employs nearly 2,000 people in Switzerland and is a significant employer in the local pharmaceutical industry.
The company’s cost pressures are due to its deteriorated profitability, high levels of debt from acquiring competitor Shire, and the loss of patent protection for its key revenue driver drug Vyvanse. These factors have put Takeda under immense pressure to cut costs by up to 25%.
To address these challenges, Takeda is focusing on refreshing its product pipeline and digitalizing its business processes. However, the company lacks new high-sales products in the short to medium term and is lagging behind competitors in digital transformation. This has raised concerns about future growth prospects for Takeda. Analysts expect little to no growth over the next four years. The company’s margins are also under pressure due to digitalization initiatives and cost-cutting measures that could impact thousands of jobs at its headquarters in Opfikon and production plant in Neuchâtel.
Takeda faces a challenging road ahead as it navigates through financial difficulties, low growth prospects, and changes in the pharmaceutical industry landscape. To secure its position in the market, the company must focus on improving profitability, refreshing its product pipeline and embracing digital transformation.
