Celltrion and Teva Announce U.S. FDA Acceptance of Biologics License Application for Proposed Biosimilar to Rituxan® (rituximab)

On June 29, 2017 Celltrion, Inc., a global biopharmaceutical company, and Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) reported that the U.S. Food and Drug Administration (FDA) has accepted for review the Biologics License Application (BLA) for CT-P10, a proposed Monoclonal Antibody (mAb) biosimilar to Rituxan1 (rituximab), which is used to treat patients with non-Hodgkin’s lymphoma (NHL), chronic lymphocytic leukemia (CLL), rheumatoid arthritis (RA), granulomatosis with polyangiitis and microscopic polyangiitis (Press release, Teva, JUN 29, 2017, View Source [SID1234519725]).

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"As the global leader in biosimilars who brought Inflectra, the world’s first mAb biosimilar approved by the FDA, to the U.S., we are pleased and honored to have this opportunity to once again work with the FDA on CT-P10," said Woo Sung Kee, Chief Executive Officer of Celltrion. "CT-P10, which has been approved in the EU, is continuing to build a solid track record since its launch there earlier this year and has provided patients with access to a high quality treatment option and has offered great savings in healthcare costs. I am hopeful that CT-P10 will bring similar benefits to the U.S. when approved."

The BLA for CT-P10 includes data for CT-P10 and reference rituximab in terms of efficacy, safety, immunogenicity, pharmacodynamics (PD) and pharmacokinetics (PK). These trials were conducted in over 600 patients and include up to 104 weeks of data. CT-P10 was approved by the European Commission in February 20172 and has launched in the U.K., Germany, Netherlands, Spain and the Republic of Korea.

"Teva is pleased to announce this important milestone today, with our partner Celltrion, bringing us one step closer to making additional biosimilar treatment options available to patients in the U.S.," said Paul Rittman, Senior Vice President and General Manager, Teva Oncology. "We look forward to leveraging Teva’s unique cross-functional capabilities across both specialty and generic medicines to continue our commitment to serving those dealing with cancer, rheumatoid arthritis, and other serious diseases."

Celltrion and Teva entered into an exclusive partnership to commercialize CT-P10 and CT-P6, a biosimilar to Herceptin (trastuzumab), in the U.S. and Canada in October 2016. As part of the agreement, Teva is responsible for all commercial activities in the U.S. and Canada, pending regulatory approvals for both products. Celltrion has responsibility for completing all clinical development and regulatory activities.

The BLA for CT-P10 has been accepted for filing by the FDA for standard review, with FDA Regulatory Action expected during the first quarter of 2018.

Sorrento Therapeutics Announced FDA Authorization of IND to Commence Clinical Trial of RTX in Intractable Cancer Pain

On June 29 2017 Sorrento Therapeutics, Inc. (NASDAQ: SRNE, "Sorrento"), reported today that the U.S. Food and Drug Administration (FDA) has authorized the Company’s Investigational New Drug Application (IND) for Resiniferatoxin (RTX), a non-opioid, TRPV1 agonist that selectively targets afferent nerve activation involved in chronic pain states (Press release, Sorrento Therapeutics, JUN 29, 2017, View Source [SID1234519722]). Sorrento intends to promptly initiate a multicenter, Phase 1b clinical trial of RTX administered by epidural injection for the treatment of intractable pain associated with cancer. RTX has been granted FDA Orphan Drug Status for pain associated with end stage disease.

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"Given its unique mechanism of action, we view RTX as a franchise molecule, uniquely positioned to halt the neurogenic inflammation cycle in a number of clinical indications. Our intention is to commence our clinical path in cancer since more than 80% of cancer patients experience uncontrolled pain during their disease and 20% of these patients remain unresponsive or intolerant to mainstay, opioid therapy[i]. We are confident in RTX providing meaningful relief to these patients given previous pre-clinical and clinical findings demonstrating that a single injection of RTX could safely and effectively reduce severe pain as well as the use of concomitant analgesics. " said Dr. Henry Ji, President and Chief Executive Officer of Sorrento Therapeutics, Inc.

RTX has been extensively tested in animals and is currently the subject of a Phase I clinical trial at the National Institute of Health (NIH) under a Cooperative Research and Development Agreement (CRADA). To date, 12 patients with terminal cancer pain have been treated. When injected intrathecally, RTX has been shown to directly interact with nerve cells expressing TRPV1 receptors without affecting normal sensation (touch and vibration sense) or muscle function. Preliminary results from the NIH trial demonstrate that a single injection of RTX was well tolerated at the dose levels tested and provided clinically meaningful reductions in pain and a reduced dependence on opioids. In contrast to opioids, RTX treatment did not result in systemic adverse events such as cognitive impairment, sedation or respiratory depression, and enabled patients to increase their activity levels.

Novartis receives EU approval for first-line use of Zykadia® in ALK-positive advanced non-small cell lung cancer (NSCLC)

On June 29, 2017 Novartis reported the European Commission approved expanding the use of Zykadia (ceritinib) to include the first-line treatment of patients with advanced non-small cell lung cancer (NSCLC) whose tumors are anaplastic lymphoma kinase (ALK)-positive (Press release, Novartis, JUN 29, 2017, View Source [SID1234519721]). Approval follows a positive opinion granted in May by the Committee for Medicinal Products for Human Use (CHMP), and is applicable to all 28 European Union member states plus Iceland, Lichtenstein, and Norway.

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The first-line approval of Zykadia is based on results from an open-label, randomized, multicenter, global, Phase III trial, ASCEND-4. The study met its primary endpoint, demonstrating a 45% reduction in the risk of disease progression in the Zykadia arm, compared to the chemotherapy arm (hazard ratio [HR] = 0.55 [95% confidence interval (CI): 0.42, 0.73; one-sided p value <0.0001])[1]. Patients treated with first-line Zykadia had a median progression-free survival (PFS) of 16.6 months (95% CI: 12.6, 27.2), compared to 8.1 months (95% CI: 5.8, 11.1) for patients treated with standard first-line pemetrexed-platinum chemotherapy with pemetrexed maintenance[1].

Overall intracranial response rate (OIRR) in patients with measurable brain metastases at baseline and at least one post-baseline assessment was 72.7% (95% CI: 49.8, 89.3; n = 22) for patients treated with Zykadia, versus 27.3% (95% CI: 10.7, 50.2; n = 22) for patients treated with chemotherapy[1]. The whole body overall response rate (ORR) was 72.5% (95% CI: 65.5, 78.7; n = 189) in patients treated with Zykadia[1].

Further, patients without brain metastases at screening receiving Zykadia experienced a median PFS of 26.3 months (95% CI: 15.4, 27.7), compared with 8.3 months (95% CI: 6.0, 13.7) among patients treated with chemotherapy (HR = 0.48 [95% CI: 0.33, 0.69])[1]. Among patients with brain metastases at screening, the median PFS was 10.7 months (95% CI: 8.1, 16.4) in the Zykadia group, versus 6.7 months (95% CI: 4.1, 10.6) in the chemotherapy group (HR = 0.70 [95% CI: 0.44, 1.12])[1].

"Today’s EC approval of Zykadia as a first-line treatment of ALK+ non-small cell lung cancer is an important step forward for patients with this type of serious disease," said Bruno Strigini, CEO, Novartis Oncology. "Our commitment to innovation in lung cancer will continue and we look forward to providing additional advancements for patients as the incidence of the disease grows around the world."

In May, US Food and Drug Administration (FDA) approved the expanded use of Zykadia to include the first-line treatment of patients with metastatic non-small cell lung cancer (NSCLC) whose tumors are anaplastic lymphoma kinase (ALK)-positive, as detected by an FDA-approved test.

Novartis Commitment to Lung Cancer
Worldwide, lung cancer causes more deaths than colon, breast and prostate cancer combined, and an estimated 1.8 million new cases of lung cancer are diagnosed each year[3],[4].

Over the past decade, Novartis Oncology’s research has supported the evolution of treatment approaches for patients living with mutation-driven types of lung cancer. The company continues its commitment to the global lung cancer community through ongoing studies, as well as the exploration of investigational compounds that target genomic biomarkers in NSCLC.

About ASCEND-4
ASCEND-4 is a Phase III randomized, open-label, multicenter, global clinical trial to evaluate the safety and efficacy of Zykadia compared to standard chemotherapy, including maintenance, in adult patients with Stage IIIB or IV ALK-positive advanced NSCLC who received no prior therapy for their advanced disease. Patients received Zykadia orally at 750 mg/daily or standard pemetrexed-based platinum doublet chemotherapy (pemetrexed 500 mg/m2 plus cisplatin 75 mg/m2 or carboplatin AUC 5-6) for four cycles followed by pemetrexed maintenance.

Of 376 patients, 189 (59 with brain metastases) were randomized to Zykadia and 187 (62 with brain metastases) to chemotherapy[1]. Approximately 59.5% of patients with measurable brain metastases at baseline did not have prior radiation therapy, the current standard of treatment for baseline brain metastases[1]. One hundred and five (105) patients out of the 145 patients (72.4%) that discontinued treatment in the chemotherapy arm received subsequent ALK inhibitor as first antineoplastic therapy. Of these patients 81 received Zykadia[1].

The most common adverse reactions in ASCEND-4 (incidence >=25% all grades) were diarrhea (85%), nausea (69%), vomiting (67%), fatigue (45%), abdominal pain (40%), decreased appetite (34%) and cough (25%). Grade 3/4 adverse reactions (incidence >=2%) were fatigue (7%), vomiting (5%), diarrhea (4.8%), abdominal pain (3.7%), weight loss (3.7%), nausea (2.6%) and prolonged QT interval (2.6%). The most common laboratory abnormalities in ASCEND-4 (incidence >=25% all grades) were increased ALT/AST (91%/86%), increased GGT (84%), increased alkaline phosphatase (81%), creatinine increase (77%), anemia (67%), hyperglycemia (53%), decreased phosphate (38%), increased amylase (37%) and neutropenia (27%). Grade 3/4 laboratory abnormalities (incidence >=2%) were increased GGT (49%), ALT/AST (34%/21%), increased alkaline phosphatase (12%), hyperglycemia (10%), increased amylase (8%), increase lipase (6%), creatinine increase (4.2%), anemia (4.2%), decreased phosphate (3.7%) and neutropenia (2.1%).

About Zykadia
Zykadia is an oral, selective inhibitor of anaplastic lymphoma kinase (ALK), a gene that can fuse with others to form an abnormal "fusion protein" that promotes the development and growth of certain tumors in cancers including non-small cell lung cancer (NSCLC). Zykadia is currently approved in over 70 countries worldwide. Please visit View Source for additional information.

Zykadia Important Safety Information
Zykadia may cause stomach upset and intestinal problems in most patients, including diarrhea, nausea, vomiting and stomach-area pain. These problems can be severe. Zykadia may also cause severe liver injury, abnormal heartbeats (slow, fast, or irregular), severe or life-threatening swelling (inflammation) of the lungs that can lead to death, pancreatitis, and high levels of pancreatic enzymes or glucose (sugar) in blood.

Zykadia may harm unborn babies. Women who are able to become pregnant must use a highly effective method of birth control (contraception) during treatment with Zykadia and up to 3 months after stopping Zykadia. Patients and their healthcare provider should decide whether to take Zykadia or breastfeed, but should not do both.

Some side effects can be serious and patients should call your healthcare provider immediately if experiencing changes in your heartbeat (fast, slow, or irregular), lightheadedness, fainting, dizziness, pain in the chest, cough, difficult or painful breathing, wheezing, pain in chest when inhaling, fever, yellow skin and eyes, nausea, loss of appetite, dark urine, and severe upper stomach pain.

Before taking Zykadia, patients should tell their healthcare provider about all medical conditions, including liver problems, diabetes or high blood sugar, heart problems, including a condition called long QT syndrome, if they are pregnant, if they think they may be pregnant, or if they plan to become pregnant, are breastfeeding or plan to breastfeed. Patients should also tell their healthcare provider about all medicines they take. Patients should not drink grapefruit juice or eat grapefruit during treatment with Zykadia, as it may make the amount of Zykadia in their blood increase to a harmful level.

Patients should have blood tests before starting treatment with Zykadia to check their liver, pancreas, and the level of sugar in blood. While taking Zykadia, blood tests to check the liver should be performed monthly, while pancreas and the level of sugar in blood should be performed regularly.

The most common adverse reactions with an incidence of >=10% diarrhea, nausea, vomiting, liver laboratory test abnormalities, fatigue, abdominal pain, decreased appetite, weight decreased, constipation, blood creatinine increased, rash, anemia, and esophageal disorder. Grade 3-4 adverse reactions with an incidence of >=5% were liver laboratory test abnormalities, fatigue, vomiting, hyperglycemia, nausea, diarrhea.

Please see full Prescribing Information for Zykadia.

CytomX Achieves Development Milestone in Strategic Oncology Collaboration with AbbVie for CD71-Targeting Probody Drug Conjugate  

On June 29, 2017 CytomX Therapeutics, Inc. (Nasdaq:CTMX), a biopharmaceutical company developing investigational Probody therapeutics for the treatment of cancer, reported that the company has advanced CX-2029, a Probody drug conjugate (PDC) targeting CD71 and being developed in collaboration with AbbVie, into GLP toxicology studies, a key step on the path to filing an Investigational New Drug (IND) application in 2018 (Press release, CytomX Therapeutics, JUN 29, 2017, View Source [SID1234519720]). Upon commencement of the GLP toxicology study, CytomX will receive a $15 million milestone payment from AbbVie as part of the 2016 strategic oncology collaboration between the companies.

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"CD71 is highly attractive for delivery of cytotoxic payloads to cancer cells, but its presence on normal cells has precluded the development of antibody drug conjugates using this high-potential target. We have used our Probody platform to design and optimize CX-2029, a CD71-targeting Probody drug conjugate with the potential to safely and effectively treat a wide range of cancers," said Sean McCarthy, D.Phil., president and chief executive officer of CytomX Therapeutics. "Rapid progression of the CX-2029 program to this important milestone has been enabled by our close collaboration with AbbVie, and we look forward to advancing this first-in-class molecule into the clinic."

About CD71 and the CytomX/AbbVie 2016 Strategic Oncology Collaboration
CytomX and AbbVie are co-developing a PDC against CD71, with CytomX leading pre-clinical and early clinical development. CD71 is also known as the transferrin receptor 1 (TfR1), the biological function of which is to internalize iron-complexed transferrin into dividing cells. CD71 is highly and homogeneously expressed on many solid and hematologic tumor types. These properties render CD71 an ideal target for antibody drug conjugate strategies except for the fact that the target is present on most normal cells. CX-2029 has been designed to target CD71 on tumor cells and spare normal cells by localizing the drug candidate’s activity primarily to cancer tissue. AbbVie will lead later development and commercialization with global late-stage development costs shared between the two companies. CytomX received an upfront payment of $30 million and is eligible to receive up to $470 million in development, regulatory and commercial milestones, pending the achievement of pre-determined outcomes. AbbVie will lead global commercial activities with CytomX eligible to receive a profit share in the U.S. and tiered double-digit royalties on net product sales outside of the U.S. CytomX retains an option to co-promote in the U.S.

AbbVie also receives exclusive worldwide rights to develop and commercialize Probody drug conjugates against up to two additional, undisclosed targets. Should AbbVie ultimately pursue these targets, CytomX is eligible to receive additional milestone and royalty payments per target on any resulting products.

141st Ordinary General Meeting of Shareholders

June 28, 2017 141 st Ordinary General Meeting of Shareholders Christophe Weber President & CEO 1 Important Notice Forward ‐ Looking Statements This presentation contains forward ‐ looking statements regarding Takeda’s future business, financial position and results of operations, including estimates, forecasts, targets and plans. These forward ‐ looking statements may be identified by the use of forward ‐ looking words such as "aim," "anticipate," "assume," "believe," "continue," "endeavor," "estimate," "expect," "forecast," "initiative," "intend," "may," "outlook," "plan," "potential," "probability," "pro ‐ forma," "project," "risk," "seek," "should," "strive," "target," "will" or similar words, or expressions of the negative thereof, or by discussions of strategy, plans or intentions. Any forward ‐ looking statements in this document are based on the current assumptions and beliefs of Takeda in light of the information currently available to it. Such forward ‐ looking statements do not represent any guarantee by Takeda or its management of future performance and involve known and unknown risks, uncertainties and other factors, including but not limited to: the economic circumstances surrounding Takeda’s business, including general economic conditions in Japan, the United States and worldwide; competitive pressures and developments; applicable laws and regulations; the success or failure of product development programs; decisions of regulatory authorities and the timing thereof; changes in exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; and post ‐ merger integration with acquired companies, any of which may cause Takeda’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward ‐ looking statements. Neither Takeda nor its management gives any assurances that the expectations expressed in these forward ‐ looking statements will turn out to be correct, and actual results, performance or achievements could materially differ from expectations. Any forward looking statements herein speak only as of the date of this document, and Takeda and its management undertake no obligation to update or revise any forward ‐ looking statements or other information contained in this presentation, whether as a result of new information, future events or otherwise. Medical Information This presentation contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drug including the ones under development. 2 Our mission is to strive towards Better Health and a Brighter Future for people worldwide through leading innovation in medicine Vision 2025 • We serve the needs of our patients, wherever they are. • We earn the trust of society and customers through Takeda ‐ ism. • We are recognized as best in class because of agility and innovation, qualities that help us build a steady pipeline and deliver growth, year on year. Mission Major trends shaping our business environment 3 Society Pharma industry Science & technologies advancing Unmet medical needs Demand for access to medicine Aging population Healthcare system under significant financial pressure Digital More scientific innovation Growth driven by innovation in the U.S. and by innovation and demand in EM More access to medicine in EM Pressure on drug prices and reimbursements Pharma industry’s reputation EM=Emerging markets 4 Value Driven: Takeda ‐ ism • Pa Ɵ ent → Trust → Reputa Ɵ on → Business Global, Agile, and Committed to Innovation • Created global organization and capabilities • Driving patient ‐ centricity and local empowerment • Therapeutic area focus: Oncology, GI, CNS, plus Vaccines World ‐ class Governance & Diverse Leadership • BOD with majority of external directors, and with Audit & Supervisory committee • Diverse & seasoned Takeda Executive Team • Comprehensive talent development programs Grow Portfolio Rebuild Pipeline Boost Profitability Transformation momentum is backed by Takeda’s values and culture GI=Gastrointestinal, CNS=Central Nervous System, BOD=Board of Directors Takeda’s Corporate Philosophy 5 Takeda ‐ ism will guide us to reach our Vision We take action and make decisions by focusing on our four priorities, in order of: Putting the patient at the center 1234 Building trust with society Reinforcing our reputation Developing the business Values Continue to commit to CSR, Access to Medicine and R&D initiatives for patients & people CSR programs Access to Medicines R&D initiatives Recent progress Global CSR programs 2017: Voted by employees Access to Medicine Our focus e.g.-Employee volunteer opportunities-Disaster Relief-x-z CSR=Corporate Social Responsibility 6 Environment, Health and Safety e.g.-Patient Assistance Programs-Access Accelerated e.g. Proposed Board of Directors for a best ‐ in ‐ class governance 7 Christophe Weber Representative Director President & CEO Masato Iwasaki Director, JPBU President Andrew Plump Director, Chief Medical & Scientific Officer Yasuhiko Yamanaka Director, A&SC member Shiro Kuniya External Director, Chair A&SC Koji Hatsukawa External Director, A&SC member Jean ‐ Luc Butel External Director, A&SC member Masahiro Sakane External Director Chair of the Board meeting Yoshiaki Fujimori External Director Toshiyuki Shiga External Director Emiko Higashi External Director Michel Orsinger External Director James Kehoe Director, Chief Financial Officer Internal directors External directors Audit & Supervisory Committee (A&SC) directors Compensation committee Chair Compensation committee Nomination committee Chair Nomination committee C C C C Developing our global workforce with around 30,000 employees in 74 countries 8 Takeda’s employee distribution Emerging markets 35% Japan 27% EUCAN 21% US 17% Note: March 2017 data excluding Wako Pure Chemical Industries (Europe + Canada) Global, Diverse and Experienced Takeda Executive Team (TET) 9 Giles Platford President EUCAN BU Thomas Wozniewski Global Manufacturing and Supply Officer Ramona Sequeira President US BU Gerard Greco Global Quality Officer Andrew Plump Chief Medical and Scientific Officer Christophe Bianchi President Global Oncology BU Rajeev Venkayya President Global Vaccine BU Christophe Weber President & CEO Masato Iwasaki President Japan Pharma BU James Kehoe Chief Financial Officer Haruhiko Hirate Corporate Communications and Public Affairs Officer Yoshihiro Nakagawa Global General Counsel David Osborne Global Human Resources Officer Ricardo Marek President EM BU U.S. JAPAN SINGAPORE SWITZERLAND BU=Business Unit 10 Transforming R&D: Therapeutic Area focus and footprint concentrated in Japan & U.S. Oncology GI Vaccine CNS Regenerative Medicine Vaccine U.S. Bushu Pharmaceuticals SCOHIA Partnership Research Engine Functional partnership Asset externalization Research site location Health Innovation Park at Shonan Japan CNS=Central Nervous System, GI=Gastroenterology All trademarks and registered trademarks are the property of their respective owners 11 Pipeline as of May 10, 2017 Investing heavily in our early pipeline, while maximizing the value of our marketed portfolio Phase 1 Phase 2 Phase 3 /Filed Life cycle management Oncology GI CNS Other Vaccines TAK ‐ 659 Hematologic malignancies TAK ‐ 931 Solid Tumors TAK ‐ 058 CIAS TAK ‐ 831 Schizophrenia, Ataxia TAK ‐ 020 RA TAK ‐ 906 Gastroparesis TAK ‐ 202 Solid Tumors TAK ‐ 243 Solid Tumors TAK ‐ 580 Solid Tumors TAK ‐ 954 Enteral Feeding Intolerance TAK ‐ 041 CIAS, Neg. symptoms TAK ‐ 653 TRD TAK ‐ 021 EV71 Vaccine TAK ‐ 079 RA CX601 Perianal Fistulas in CD AD ‐ 4833/ TOMM40 Delay of MCI TAK ‐ 003 Dengue Vaccine Relugolix Uterine Fibroids (JP), Endometriosis, Prostate Cancer NINLARO FL MM, Amyloidosis, Maint MM post ‐ SCT, Maint MM w/o SCT ALUNBRIG ALK+ NSCLC (EU), FL ALK+ NSCLC ICLUSIG CML, SL CML, Ph+ ALL ENTYVIO UC/CD, SubQ, GvHD, IO Colitis, H2H, PSC TRINTELLIX TM Cognition in MDD, MDD (JP), ADHD ADCETRIS FL HL, MTCL, CTCL Cabozantinib Solid Tumors (JP) TAKECAB ARD (Asia), NERD (JP) Rasagiline Parkinson’s disease (JP) AMITIZA Ped Constipation, New Formulation TAK ‐ 788 (AP32788) NSCLC TAK ‐ 071 LBD ‐ AD TAK ‐ 935 Epilepsy XMT ‐ 1522 HER2 positive Solid Tumors pevonedistat HR MDS sapanisertib RCC, Breast, Endometrial TAK ‐ 214 Norovirus Vaccine namilumab RA Late ‐ stage / Life cycle management 12 Enhance pipeline through collaborations and external innovation mainly focused on early stage Oncology GI CNS Value Creation Discovery / Preclinical Phase 1 Vaccines XMT ‐ 1522 TAK ‐ 788 (AP32788) TAK ‐ 906 TAK ‐ 954 TAK ‐ 094 TAK ‐ 792 TAK ‐ 233 TAK ‐ 935 Undisclosed TAK ‐ 272 Relugolix Cx ‐ 601 ALUNBRIG, ICLUSIG Cabozantinib Not all ‐ inclusive. All trademarks and registered trademarks are the property of their respective owners BARDA 13 Grow Portfolio • Underlying Revenue +6.9%, every region growing • Growth Drivers +14.7%, Entyvio 146.5 Bn yen Rebuild Pipeline • Significant progress in R&D transformation • Over 50 collaborations in 18 months Boost Profitability • Underlying CE growth: +24.2% • Underlying CE margin: +180 bps • ROE is recovering: 6.0% in FY16 (+2.1pp from FY15) FY2016 results reflect transformation success Note: • "Underlying growth" compares two periods of financial results on a common basis, showing the ongoing performance of the business excluding the impact of foreign exchange and divestitures from both periods • CE="Core Earnings" is calculated by taking reported Gross Profit and deducting SG&A expenses and R&D expenses. In addition, certain other items that are non ‐ core in nature and significant in value may also be adjusted • bps=basis point: one hundredth of a percent • ROE=Return on equity 14 ROE performance is recovering (%) Takeda’s historical ROE evolution 15.1 10.9 14.4 11.8 6.1 6.3 4.5-6.3 3.9 6.0 0% Actos settlement FY07 08 09 10 11 12 13 14 15 16 15 FY2017 and future outlook 16 Projecting strong underlying performance in FY2017 Underlying Revenue Underlying Core EPS Underlying Core Earnings FY2017 guidance (growth %) Low single digit Mid ‐ to ‐ high teen Low ‐ to ‐ mid teen Annual dividend per share 180 yen 17 +100 ‐ 200bps Underlying Core Earnings margin improvement every year driven by: Gross profit for ~50% Global Opex Initiative • Pay less • Buy less • Work better OPEX for ~50% R&D transformation + + + + ‐ Inflation and Investments ‐ Price pressure COGS improvement Product mix 18 Capital allocation priorities Internal investment in R&D and product launches Dividend as key component of shareholder returns Maintain investment grade credit rating Disciplined and focused M&A 1 2 3 4 19 Thank you

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