Takeda Pharmaceutical Co has unveiled its financials for the fiscal year ended March which shows that net income sank dropped 34.1% to 234.4 billion yen, about $2.4 billion, but insists that the future looks bright.

The decline was principally due to costs related to its acquisition of the USA’s Millennium Pharmaceuticals and the conclusion of its TAP Pharmaceutical Products joint venture with Abbott Laboratories. However, turnover rose 11.9% to 1.538 trillion yen.

Revenue growth was driven by the diabetes drug Actos (pioglitazone), which brought in 387.0 billion yen, down 2.3% as a result of currency effects. The gastrointestinal drug Prevacid/Takepron (lansoprazole) leapt 82.5% to 271.4 billion yen, due to the consolidation of TAP which used to market the drug in the USA.

Sales of the blood pressure drug Blopress (candesartan cilexetil) were up 3.3% to 230.3 billion yen, while turnover from the prostate cancer treatment Leuplin (leuprorelin) edged up 1.7% to 126.1 billion yen. For fiscal 2009, the company said it expects net income to increase 20% to 280 billion yen, though the strength of the yen means that sales will be flat.

In terms of pipeline, Takeda confirmed that a delay in getting the new diabetes drug alogliptin, a dipeptidyl peptidase IV (DPP-4) inhibitor, to market in the USA looks inevitable. In March, the Food and Drug Administration told the Japanese drugmaker that the data in its New Drug Application for alogliptin is not sufficient to meet requirements in the agency’s new guidance on drugs for treating type 2 diabetes following concerns of cardiovascular risks.

Takeda says that “it is inappropriate for the company to speculate on the outcome of the FDA’s review, but we understood that an additional study will be necessary”. Discussions with the agency have begun in regard to a study protocol.

Noting that it will “take time for the global economy to recover," Takeda said that “the environment facing the pharmaceutical industry is becoming challenging”, due to US government policy that public medical insurance costs be reduced. In addition to that, “initiatives in Japan and Europe to promote generic use, as well as the worldwide implementation of a stricter approval process for new drugs" is making life tough.

To combat this, Takeda has announced a reorganisation to create “corporate-level, centre-of-excellence R&D, commercial and administrative functions that will promote collaboration among functions and enable us to make more rapid and flexible decisions”. As part of the restructuring, the company’s global development headquarters will be moved to the USA, “which is a key region when determining development strategy”.