Takeda Pharmaceutical Co forecast on Tuesday it would have an operating loss in the current financial year, as it books costs associated with the multibillion-dollar Shire deal.
Japan’s biggest drugmaker expects an operating loss of 193 billion yen ($1.76 billion) for the year to March 2020, compared with a 205 billion yen profit a year earlier.
Annual profit would be squeezed as Shire-related costs pile up due to the re-evaluation of Shire’s inventories and fixed intangible assets, the Japanese drugmaker had flagged earlier.
The Shire acquisition, completed in January, catapulted Takeda into the world’s top 10 drugmakers by sales but also made it one of the most indebted.
Takeda agreed last week to sell its dry eye drug Xiidra to Swiss drugmaker Novartis for up to $5.3 billion, as part of a move to dispose of $10 billion worth of non-core assets to cut debt. The company also said it is selling TachoSil, a surgical patch for bleeding control, to Johnson & Johnson’s Ethicon for $400 million.
In addition to these drugs, Takeda is looking to dispose of Shire-originated SHP647 that treats inflammatory bowel disease after the European Commission voiced concerns about the overlap with its own drug called Entyvio.