Takeda Delivers Strong Third Quarter FY2021 Results and Raises Full-Year Forecast Reflecting Strong Momentum

On February 3, 2022 Takeda (TOKYO:4502/NYSE:TAK) reported strong financial results for the third quarter of its fiscal year 2021 (period ended December 31, 2021) driven by robust topline growth of its 14 global brands (Press release, Takeda, FEB 3, 2022, View Source [SID1234607708]). Based on the strong third-quarter results and business momentum, the company upgraded forecasts for full fiscal year revenue, reported and core operating profit, reported and core EPS and free cash flow.

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Takeda remains positioned for long-term business growth with solid margins and strong cash generation. Its 14 global brands are projected to continue driving topline growth in the near-term, through continued market penetration, geographic expansion, improving access and life cycle management. In addition, the company remains committed to growing its late-stage pipeline by advancing its diverse portfolio of approximately 40 clinical stage assets, which is poised to deliver sustained value over the long-term. In December 2021, Takeda announced the launch of LIVTENCITY (maribavir), its second new molecular entity approved by the U.S. FDA in FY2021, following the EXKIVITY (mobocertinib) approval and launch in Q2 FY2021.

Costa Saroukos, Chief Financial Officer, commented:
"Takeda’s third-quarter results demonstrate the continued strength of our portfolio, particularly our 14 global brands, and conviction in our long-term strategy. We have raised our full-year FY2021 forecast to reflect strong business momentum and now expect to deliver full-year Free Cash Flow of 700 to 800 billion yen.
We remain committed to growing revenue over the next decade through continued investment in our 14 global brands and our innovative pipeline of approximately 40 clinical-stage assets, which is already starting to deliver with the recent launch in the U.S. of LIVTENCITY, the second major regulatory approval for our pipeline in FY2021 after EXKIVITY."

FINANCIAL AND BUSINESS HIGHLIGHTS

(a) Further information regarding certain of Takeda’s Non-IFRS measures is posted on Takeda’s investor relations website at View Source." target="_blank" title="View Source." rel="nofollow">View Source
(b) Underlying growth compares two periods (quarters or years) of financial results under a common basis and is used by management to assess the business. These financial results are calculated on a constant currency basis and excluding the impact of divestitures and other amounts that are unusual, non-recurring items or unrelated to our ongoing operations.
(c) Core Operating Profit represents net profit adjusted to exclude income tax expenses, the share of profit or loss of investments accounted for using the equity method, finance expenses and income, other operating expenses and income, amortization and impairment losses on acquired intangible assets and other items unrelated to Takeda’s core operations, such as non-recurring items, purchase accounting effects and transaction related costs.
(d) Free Cash Flow represents cash flows from operating activities, excluding acquisition of plant, property and equipment, intangible assets and investments, and any other cash that is not available to Takeda’s immediate or general business use, and including proceeds from sales of property, plant, sales and redemption of investments and businesses, net of cash and cash equivalents divested.

Reported Revenue Increased +11%; Underlying Revenue Increased +7.1% vs Q3 FY2020 YTD, Driven by 14 Global Brands

Takeda’s 14 global brands, with an aggregate reported revenue of 1,073.2 billion yen ($9.3B), posted year-over-year underlying revenue growth of +12% and now represent 42% of total core revenue, with growth momentum expected to continue beyond FY2021.
Takeda’s five key business areas, with 2,213.6 billion yen ($19.2B) in reported revenue, represented 86% of core revenues.
Gastroenterology (GI), with 665.7 billion yen ($5.8B) in reported revenue, grew +8% on an underlying basis driven by gut-selective ENTYVIO (vedolizumab). Following a review of assumptions regarding ENTYVIO biosimilars, Takeda is no longer expecting entry of biosimilars upon loss of data exclusivity.
Plasma Derived Therapy (PDT) Immunology, with 363.2 billion yen ($3.2B) in reported revenue, grew +10% on an underlying basis driven by Immunoglobulin and Albumin/FLEXBUMIN.

Rare Diseases, with 462.9 billion yen ($4.0B) in reported revenue, declined -1% on an underlying basis, with treatments for Rare Hematology impacted by intensified competition. HAE had underlying growth of +5% due to growth of the prophylactic market, continued geographic expansion and strong patient uptake.

Oncology, with 359.1 billion yen ($3.1B) in reported revenue, grew +8% on an underlying basis driven by increased market penetration and strong demand increases in Growth and Emerging Markets, particularly China.

Neuroscience, with 362.6 billion yen ($3.1B) in reported revenue, grew +10% on an underlying basis driven by a strong rebound of VYVANSE following the impact of COVID-19 in FY2020.

Reported Operating Profit Increased +28.9%; Underlying Core Operating Profit Margin was 29.4% for Q3 FY2021 YTD

Reported operating profit increased +28.9% to 462.5 billion yen ($4.0B) compared to Q3 FY2020 YTD, driven by a gain on the sale of the diabetes portfolio in Japan and lower integration costs. These items more than offset a decrease in other operating income, primarily due to a one-time gain recorded in Q1 FY2020 and a gain from non-core asset divestitures recorded in Q3 FY2020.
Underlying core operating profit for the current period increased +5.4%, attributable to underlying revenue growth.
Accelerating Efforts to Meet the Growing Demand for COVID-19 Vaccines

Takeda is partnering with Novavax in Japan for the development, manufacturing and commercialization of TAK-019, their COVID-19 vaccine candidate, utilizing Takeda’s Hikari manufacturing site in Japan, for the pandemic and beyond.
The company also entered into an agreement with the Government of Japan’s Ministry of Health, Labour and Welfare (MHLW) for the purchase of 150 million doses of TAK-019. Distribution of the first doses in Japan is planned for early 2022, subject to regulatory approval.
Takeda continues to deliver on its three-way agreement with Moderna and MHLW to import and distribute Moderna’s COVID-19 vaccine in Japan.
To date, 50 million doses of Moderna’s COVID-19 vaccine have been imported to Japan. Takeda has started importation and distribution of an additional 93 million booster doses from the beginning of 2022 for a total distribution of 143 million doses.
Important Pipeline Milestones in Q3 FY2021

Takeda expects key proof-of-concept readouts over the next two years for potential therapies that could unlock significant additional value, and a continued focus on strategic partnerships that allow Takeda to harness cutting-edge innovation no matter where it resides, delivering life-transforming treatments to patients around the world. The company gained momentum toward that goal in Q3 FY2021, and to date, through:

LIVTENCITY received approval from the U.S. FDA for the treatment of adult and pediatric patients over the age of 12 with post-transplant cytomegalovirus (CMV) infection/disease that is refractory to treatment (with or without genotypic resistance) with ganciclovir, valganciclovir, cidofovir or foscarnet.
In December 2021, Takeda received a Complete Response Letter (CRL) from the U.S. FDA for TAK-721 (budesonide oral suspension) for the treatment of eosinophilic esophagitis. In the CRL, the FDA indicated that the New Drug Application could not be approved in its present form and requested additional data that would require an additional clinical trial. The company has completed a comprehensive review of the CRL and will discontinue the TAK-721 development program.
In January 2022, Takeda announced an intent to acquire Adaptate Biotherapeutics to further accelerate the development of innovative γδ (gamma delta) T cell-based therapies. The acquisitions of Adaptate and the previously announced intent to acquire GammaDelta are expected to be finalized in Q1 of Takeda’s fiscal year 2022. Also in January 2022, Takeda obtained antitrust clearance from the FTC regarding its acquisition of GammaDelta pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the U.S. No additional antitrust approvals are required.
In January 2022, ENTYVIO received approval from the European Commission for intravenous treatment of adult patients with moderately to severely active chronic pouchitis, who have undergone proctocolectomy and ileal pouch-anal anastomosis for ulcerative colitis and have had an inadequate response with or lost response to antibiotic therapy.

Key Assumptions in FY2021 Forecast

Company forecast reflects favorability of updated FX assumptions and management’s expectations for continued business momentum across Takeda’s five key business areas, underlying revenue growth of its 14 global brands, and discipline in operating expenses.

FY2021 forecast and guidance reflect the following key assumptions, including (1) Takeda expects at least one 505(b)2 competitor for subcutaneous VELCADE to launch in the U.S. in late FY2021; (2) Takeda does not expect to restart sales of NATPARA in the U.S. market in FY2021; and (3) FY2021 forecast and guidance do not include the impact of any potential further divestitures beyond what has already been disclosed by Takeda.

To date, Takeda has not experienced a material effect on its financial results as a result of the global spread of COVID-19. Based on currently available information, Takeda believes that its financial results for FY2021 will not be materially affected by COVID-19 and, accordingly, Takeda’s FY2021 forecast reflects this belief. However, the situation surrounding COVID-19 remains highly fluid, and future COVID-19-related developments in FY2021, including new or additional COVID-19 outbreaks and additional or extended lockdowns, shelter-in-place orders or other government action in major markets, could result in further or more serious disruptions to Takeda’s business, such as slowdowns in demand for Takeda’s products, supply chain related issues or significant delays in its clinical trial programs. These events, if they occur, could result in an additional impact on Takeda’s business, results of operations or financial condition, as well as result in significant deviations from Takeda’s FY2021 forecast.

For more details on Takeda’s Q3 FY2021 results and other financial information, please visit: View Source

More information on Takeda’s approach to ESG and values-based corporate governance can be found in the 2021 Annual Integrated Report for FY2020, which ended March 31, 2021. This report can be accessed on Takeda’s website at: View Source

Applied DNA Schedules Fiscal 2022 First Quarter Financial Results Conference Call and Webcast for Thursday, February 10, 2022

On February 3, 2022 Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA" or the "Company"), a leader in Polymerase Chain Reaction (PCR)- based DNA manufacturing and nucleic acid-based technologies, reported that it will report fiscal 2022 first quarter financial results after market close on Thursday, February 10, 2022 (Press release, Applied DNA Sciences, FEB 3, 2022, View Source;id=222885&p=2218540&I=1206939-c7Z3G6f3m8 [SID1234607707]). The Company’s management will discuss the results during a conference call and simultaneous webcast at 4:30 p.m. ET that same day. Presentation slides will also be posted to the ‘Company Events’ sub-page of the Company’s Investor Relations website and embedded into the live webcast.

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Conference Call and Webcast Information – Live

Date:

Thursday, February 10, 2022, at 4:30 p.m. Eastern Time

Dial in:

844-887-9402

412-317-6798 (international)

Hosts:

Dr. James A. Hayward, chairman, president, and CEO

Beth Jantzen, chief financial officer

Webcast:

View Source

Conference Call and Webcast Information – Replay

A telephonic replay of the conference call will be available for one week beginning one hour after the end of the live conference call.

Dial in:

877-344-7529

412-317-0088 (international)

Access Code: 2723913

Webcast:

View Source

Availability:

Telephonic replay: until Thursday, February 17, 2022; webcast replay: 1 year

Neoleukin Therapeutics to Present at Guggenheim Healthcare Talks 2022 Oncology Conference

On February 3, 2022 Neoleukin Therapeutics, Inc., "Neoleukin" (NASDAQ:NLTX), a biopharmaceutical company utilizing sophisticated computational methods to design de novo protein therapeutics, reported that Jonathan Drachman, M.D., Chief Executive Officer, will participate in a fireside chat at the Guggenheim Healthcare Oncology Talks 2022 Oncology Conference on Thursday, February 10, 2022 at 1:30 p.m. Eastern (Press release, Neoleukin Therapeutics, FEB 3, 2022, View Source [SID1234607706]).

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The webcast presentation can be accessed from the investors section of the Neoleukin website at View Source An archived replay will also be available on the company website for at least 30 days following the event.

Merus to Participate in Upcoming Investor Conferences

ON February 3, 2022 Merus N.V. (Nasdaq: MRUS), a clinical-stage oncology company developing innovative, full-length multispecific antibodies (Biclonics and Triclonics), reported that Bill Lundberg, M.D., President, Chief Executive Officer of Merus, will participate in the following investor conferences (Press release, Merus, FEB 3, 2022, View Source [SID1234607705]):

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Guggenheim Healthcare Talks/2022 Oncology Conference (fireside chat): Thursday, February 10 at 10:30-10:55 a.m. ET
Citi’s 2022 Virtual Immuno-Oncology Summit (fireside chat including Andrew Joe, M.D., Merus Chief Medical Officer): February 16 at 1:30-2:30 p.m. ET
11th Annual SVB Leerink Global Healthcare Conference (presentation): Thursday, February 17 at 12:00-12:30 p.m. ET
The webcasts of the presentations will be contemporaneously available on the Investors page of the Company’s website. Archived presentations will also be available there for a limited time after the event.

MEDIGENE REPORTS PRELIMINARY EFFICACY AND IMMUNE MONITORING DATA OF PHASE I OF PHASE I/II MDG1011 TRIAL IN BLOOD CANCERS

On February 2, 2022 Medigene AG ( View Source) (Medigene, FSE: MDG1, Prime Standard), a clinical-stage immuno-oncology company focusing on the development of T-cell-based cancer therapies, reported that promising preliminary efficacy and immune monitoring data from the Phase I part of the Phase I/II clinical trial of Medigene’s T cell receptor-modified T cell (TCR-T) therapy MDG1011 in patients with advanced-stage blood cancers (ClinicalTrials.gov Identifier: NCT03503968 ( View Source)) (Press release, MediGene, FEB 3, 2022, View Source [SID1234607703]). Data demonstrating safety and tolerability, with no cases of dose-limiting toxicity (DLT) associated with MDG1011, were published in December 2021.

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MDG1011 is a TCR-T immunotherapy directed against the tumor antigen PRAME (PReferentially expressed Antigen in MElanoma). Patients with relapsed or refractory acute myeloid leukemia (AML), myelodysplastic syndrome (MDS) or multiple myeloma (MM) were included in the open-label, dose-escalation Phase I part of the study that was conducted at nine clinical centers in Germany. Following standard pre-conditioning, patients received MDG1011 as a single intravenous infusion at specified dose levels of 0.5, 1 or 5 million TCR-transduced T cells per kg body weight. The primary study objectives were to evaluate safety, tolerability, and feasibility to manufacture autologous MDG1011 TCR-T cells for heavily pretreated patients. In addition, preliminary signs of clinical efficacy and immune monitoring data were investigated.

Clinical and biological data analysis

MDG1011 contained CD8+ TCR-T cells showing recognition and killing of specific standardized target cells in vitro and was successfully manufactured for 13 patients. The group of patients included ten with AML, two with MM and one with MDS. Four patients succumbed to disease before treatment could be administered, in line with the severity of the underlying condition of study patients. Thus, nine patients received MDG1011 at one of the three specified dose levels.

Patient immune monitoring included detection of PRAME-specific T cells (MDG1011 TCR-T cells) in blood to determine persistence over time and biomarker tracking of PRAME in bone marrow and/or blood (as an indicator for remaining cancer cells) by qPCR.

* One patient with AML treated at the lowest dose experienced complete remission at week 4 after treatment; however, this clinical response was not sustained, and the patient’s disease progressed 8 weeks thereafter. PRAME expression was slightly increased from baseline at week 4 whereas MDG1011 TCR-T cells were below the detection level.
* Two patients with AML, treated at the intermediate and highest dose respectively, experienced transient grade 1 or 2 cytokine release syndrome (CRS) within 3 days of drug administration, providing evidence of biological activity of MDG1011 therapy in vivo. MDG1011 TCR-T cells were still detectable in both patients at week 4.
* One patient with multilineage MDS and myeloproliferative neoplasm (MPN) treated at the highest dose, remained without apparent progression to secondary AML 3 and 6 months after MDG1011 administration and is still monitored. MDG1011 TCR-T cells were found at weeks 4, 8 and 12 and were still present at lower levels at month 6 after treatment. Bone marrow could not be evaluated in this patient. PRAME signals in blood were no longer detected at week 4 but gradually increased thereafter at 2, 3 and 6 months, remaining clearly below the baseline level. In concordance, blast counts both in blood and bone marrow remained well below baseline.
* MDG1011 TCR-T cells were detected in six of eight evaluable patients at one or more time points within four weeks after administration. TCR-T cells were also present in two patients at later time points, albeit at decreased levels.
* The biomarker PRAME was assessed in bone marrow samples from five patients four weeks after MDG1011 administration compared to baseline. PRAME decreases occurred in three AML and one MM patient while a slight increase was noted in another patient with MM. PRAME decreased in blood at week 4 for two patients treated at the highest dose but increased thereafter.

The preliminary clinical observations in two patients and occurrence of CRS in a further two of the nine heavily pretreated cancer patients are both encouraging and consistent with expectations of an adoptive T cell therapy. These observations are corroborated by the immune monitoring data.

Prof. Simone Thomas, from the Department of Internal Medicine III of the University Hospital Regensburg and Leibniz Institute for Immunotherapy, Principal Investigator of the study: "No immune effector cell-associated neurotoxicity syndrome (ICANS) or DLTs were detected, so MDG1011 appears to be safe and well-tolerated at all three doses. The aforementioned clinical observations taken together with the effect on PRAME levels and the persistence of MDG1011 strongly support the hypothesis of biological activity of MDG1011."

Prof. Dolores Schendel, Chief Executive Officer and Chief Scientific Officer at Medigene: "We are very pleased that all MDG1011 TCR-T drug products manufactured from such heavily pre-treated patients with a substantial disease burden showed strong functional activity in vitro, leading to detectable biological and/or clinical activity in four patients.

The effects of PRAME-specific TCR-T immunotherapy on cancer cells should be further investigated based on this safe and well-tolerated treatment. The use of higher cell numbers as well as the treatment of patients with less advanced disease stages could further increase the clinical benefit in the future. Based on our strategic shift to development of TCR-T immunotherapy for solid cancer, Medigene has announced previously that the Phase II part of this study will only be conducted with or by a partner; based on overall results from the Phase I part of the study.

Our current development programs in solid cancer concentrate on TCR discovery for novel tumor-specific antigens and implementation of innovative tools to enhance efficacy and improve safety of T-cell-based immunotherapies."