Takeda, a Japanese drug manufacturer, is facing significant cost pressures that are leading to major job cuts at its European headquarters in Opfikon. Despite being little known in Switzerland, Takeda employs nearly 2,000 people in the country, making it one of the important employers in the local pharmaceutical industry.
The company is under immense financial pressure due to various factors such as deteriorated profitability, high levels of debt from the acquisition of competitor Shire, and the loss of patent protection for one of its key revenue drivers, the drug Vyvanse. This has led to reports indicating the need to cut costs by 5 to 25 percent.
In addition to these challenges, Takeda is also facing difficulties in refreshing its product pipeline and digitalizing its business processes. The company lacks new high-sales products in the short to medium term and is lagging behind competitors in digital transformation. This has created uncertainty about future growth prospects for Takeda.
The future growth prospects for Takeda seem weak, with analysts expecting little to no growth over the next four years. The company’s margins are also under pressure due to digitalization initiatives and the need for cost-cutting measures, which could impact thousands of jobs at the company’s 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 find ways to improve profitability, refresh its product pipeline and embrace digital transformation.