Takeda to invest US $30B in U.S. biopharma expansion

JAPAN – Takeda is making a bold commitment to its future in the U.S., announcing plans to invest approximately US $30 billion in its American operations over the next five years.

Speaking during the company’s full-year 2024 earnings call, CEO Christophe Weber emphasized that this move reflects the importance of the U.S. as a global leader in biopharma innovation.

“The U.S. is the world’s top market for pharmaceutical progress,” he said, expressing hope that the environment for growth and research remains strong.

With this major investment, Takeda joins other industry giants such as Eli Lilly, Johnson & Johnson, Bristol Myers Squibb, Gilead Sciences, AbbVie, Roche, and Novartis, who have pledged billions to strengthen their U.S. manufacturing and research presence.

Many of these moves follow rising pressure from Washington, including trade policy changes and potential regulatory shifts, such as the return of drug pricing reforms proposed by President Donald Trump.

One such policy, the “Most Favored Nations” (MFN) model, aims to cap U.S. drug prices at the lowest levels charged in comparable countries.

Julie Kim, president of Takeda’s U.S. division, voiced concerns over this approach, calling it a form of price control that could threaten the entire industry.

“If MFN were applied to Medicaid, the industry could lose up to US $1 trillion over 10 years,” she said, warning that it could undermine innovation and investment.

Instead, Kim advocated for more supportive policies to encourage domestic pharmaceutical manufacturing and R&D.

“There are better ways to strengthen the U.S. biopharma industry without stifling innovation,” she added.

Despite political and economic uncertainties, Takeda sees limited exposure to U.S. tariffs, which partly motivated these corporate investment pledges in recent years.

Weber explained that while the U.S. accounts for half of Takeda’s total revenue, only 8–10% of U.S. sales come from imports, mainly from Europe, Japan, and Singapore.

He also pointed out that Takeda’s top-selling drug, Entyvio, used to treat inflammatory bowel diseases, is fully manufactured in the U.S.

Weber clarified that the US $30 billion commitment isn’t just a reaction to external pressure but part of Takeda’s long-term growth strategy in the U.S.

It includes upgrading manufacturing sites, investing in cutting-edge R&D, and enhancing overall productivity.

“This is about maintaining and expanding our footprint,” he said.

Financially, Takeda saw solid performance in 2024, reporting ¥4,581.6 billion (US $31.6 billion) in revenue – a 7.5% increase year-on-year.

Entyvio led the growth, bringing in ¥914.1 billion (US $6.2 billion), up 8.5% from the previous year.