Takeda, a Japanese drug manufacturer, is facing significant cost pressures that have led to major job cuts at its European headquarters in Opfikon. Despite being relatively unknown in Switzerland, Takeda employs nearly 2,000 people in the country and is one of the most important employers in the local pharmaceutical industry after Roche, Novartis, and Lonza.
The company’s profitability has deteriorated due to various factors such as high levels of debt from acquiring competitor Shire and the loss of patent protection for key revenue driver Vyvanse. To address these issues, Takeda must cut costs by 5 to 25 percent. However, this cost-cutting pressure is also leading to challenges in refreshing its product pipeline and digitalizing business processes.
Takeda lacks new high-sales products in the short to medium term and lags behind competitors in digital transformation initiatives. These challenges could result in additional job cuts at the company’s headquarters in Opfikon and production plant in Neuchâtel.
The future growth prospects for Takeda are 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 cost-cutting measures that could impact thousands of jobs.
Despite these financial difficulties and low growth prospects, Takeda must find ways to improve profitability, refresh its product pipeline and embrace digital transformation to maintain its position in the market.
