Innovent and Takeda Finalize $11.4 Billion Partnership to Develop Next-Generation IO and ADC Treatments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy TAK?
Source: NASDAQ.COM
Collaboration Announcement: Innovent Biologics has finalized a global strategic collaboration with Takeda to enhance the development and commercialization of its immuno-oncology and antibody-drug conjugate therapies, including IBI363 and IBI343.
Co-Development and Commercialization: The agreement allows for co-development of IBI363 in the U.S. with shared manufacturing rights, while Takeda gains exclusive rights for IBI343 and an option for IBI3001 outside Greater China.
Financial Terms: Takeda will make an upfront payment of $1.2 billion to Innovent, which includes a $100 million equity investment, with potential milestone payments bringing the total deal value to approximately $11.4 billion.
Royalty and Profit Sharing: Innovent will receive royalties for each molecule outside Greater China, and profits and losses for IBI363 in the U.S. will be shared on a 40/60 basis between Innovent and Takeda.
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Analyst Views on TAK
Wall Street analysts forecast TAK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TAK is 18.00 USD with a low forecast of 18.00 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 17.800
Low
18.00
Averages
18.00
High
18.00
Current: 17.800
Low
18.00
Averages
18.00
High
18.00
About TAK
Takeda Pharmaceutical Co Ltd is a Japan-based company mainly engaged in the research and development, manufacture, sale and licensing of pharmaceuticals. The Company focuses on the main business areas of gastrointestinal diseases, rare diseases, plasma derivatives (immune diseases), oncology (cancer), and neuroscience (neuropsychiatric diseases). The Company focuses on three research and development areas: innovative biopharmaceuticals with the focus on gastrointestinal and inflammatory diseases, neuroscience, and oncology, plus plasma derivatives and vaccines. Most of the pharmaceuticals treat rare diseases in the focus disease areas and the plasma derivatives area. The Company operates in Japan, the United States, Europe, and China.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Market Potential: With Entyvio generating $6.4 billion in global net revenue last year, Alvotech's success could capture substantial market share, especially as biosimilars gain increasing attention in the pharmaceutical landscape.
- Positive Regulatory Feedback: Regulatory feedback indicates that the AVT80-GL-P01 trial results meet expectations, confirming pharmacokinetic similarity for AVT80 and AVT16 in subcutaneous and intravenous administration, laying a solid foundation for future market applications.
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- Earnings Miss: Takeda reported an adjusted net profit of 235 billion yen (approximately $1.53 billion) for Q3 2025, with earnings per American Depositary Share (EPADS) at 47 cents, falling short of analyst expectations of 55 cents, indicating pressure on profitability.
- Sales Decline: Total sales for the quarter reached $7.60 billion (1.192 trillion yen), missing consensus estimates of $8.53 billion, with a year-over-year sales decline of 4.2%, primarily due to decreased revenue in the Neuroscience segment.
- Mixed Product Performance: Neuroscience sales fell 23.6% to 108.4 billion yen, while vaccine sales nearly doubled to 23.3 billion yen, and cancer drug sales increased by 3.8% to 148.8 billion yen, highlighting disparities in market performance across different product lines.
- Guidance Revision: Takeda revised its fiscal 2025 core revenue guidance from 4.50 trillion yen to 4.53 trillion yen, expecting core operating profit of 1.15 trillion yen, reflecting proactive adjustments in cost management and favorable foreign exchange conditions.
See More
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- Performance Overview: Takeda reported a Non-GAAP EPS of ¥428.00 and revenue of ¥3,411.2 billion for the nine months ended, reflecting a 3.3% year-over-year decline, indicating pressure in the competitive pharmaceutical market.
- Fiscal Year Guidance Update: The company revised its FY2025 management guidance primarily due to VYVANSE, projecting core revenue to remain broadly flat, with low-single-digit declines in operating profit and EPS, showcasing its focus on cost discipline.
- Core Financial Forecasts: The revised core revenue forecast for FY2025 is set at ¥4,530 billion, with operating profit expected at ¥410 billion, demonstrating the company's ability to maintain profitability amid market uncertainties.
- Cash Flow and Dividends: Adjusted free cash flow is projected between ¥650 billion and ¥750 billion, while the annual dividend per share remains at ¥200, indicating stability in shareholder returns amidst operational challenges.
See More
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- Revenue Performance: Takeda's Q3 FY2025 revenue reached ¥3,411.2 billion, a 3.3% year-on-year decline primarily due to VYVANSE generics; however, the company raised its full-year forecasts based on cost discipline and favorable FX effects.
- Profit Growth: The operating profit for Q3 was ¥422.4 billion, reflecting a 1.2% increase year-on-year, demonstrating the effectiveness of the company's operational efficiency improvements and cost management, with expectations to meet core operating profit guidance.
- New Drug Applications: Takeda has submitted NDAs for oveporexton and rusfertide, with plans to file for zasocitinib within the next 18 months, each having the potential to redefine care standards and drive long-term growth for the company.
- Strategic Positioning: CFO Milano Furuta emphasized that FY2025 is pivotal for Takeda as the company prepares for multiple innovative product launches aimed at improving patient lives and delivering long-term shareholder value.
See More
Takeda Pharmaceutical Reports Q3 FY2025 Earnings Results
- Revenue Decline: As of December 31, 2025, Takeda's revenue decreased by 3.3% year-on-year to ¥3,411.2 billion, primarily impacted by the competition from VYVANSE® generics, indicating increasing market pressures.
- Core Operating Profit Changes: Core operating profit fell by 3.4% to ¥971.6 billion, although reported operating profit increased by 1.2% due to lower restructuring expenses, reflecting the company's efforts in cost management.
- Outlook Adjustment: Takeda revised its FY2025 management guidance, anticipating a low single-digit decline in core revenue primarily due to VYVANSE's market performance, demonstrating a cautious approach to future market conditions.
- New Drug Application Progress: The company has submitted NDAs for oveporexton and rusfertide, with plans to launch these new products with multibillion-dollar peak revenue potential within the next 18 months, marking a proactive strategy in new product development.
See More
