Takeda Accelerates Digital Transformation with Accenture and AWS

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Collaboration will leverage cloud and data-driven insights to accelerate drug development, increase operational agility, reduce technology costs and develop the workforce of the future

Takeda Pharmaceutical Company Limited (TSE: 4502/NYSE: TAK) (“Takeda”), Accenture (NYSE: ACN) and Amazon Web Services, Inc. (AWS) have entered into a five-year strategic agreement to accelerate Takeda’s digital transformation.

Not only will patients benefit from Takeda’s ability to respond with greater speed, agility, and insights across the value chain, but customers, employees, and partners will also benefit. This long-term collaboration will fuel Takeda’s cloud-driven business transformation by modernizing platforms, accelerating data services, establishing an internal engine for innovation, and equipping Takeda’s employees with new skills and ways of working.

“By combining the power of three organizations, Takeda is making a bold move to be at the intersection of human health, technology and business growth,” said Christophe Weber, Takeda president and chief executive officer. “My vision is that, in less than ten years, every Takeda employee will be empowered by an artificial intelligence assistant to help make better decisions, enabling us to deliver transformative therapies and better experiences to patients, physicians and payers faster than previously possible. Together, Accenture and AWS will propel Takeda further than we could alone to make this vision a reality.”

Taking a cloud-first technology approach will create a more scalable, reliable and secure architecture and eliminate unnecessary integration activities. By moving 80% of applications to the cloud, Takeda will remove non-differentiating technology, reduce its internal data center footprint, and decrease capital expenditures.

“By leveraging the most comprehensive set of cloud services in the industry, innovators like Takeda can cut costs, time to insight and discovery, and improve patient experiences,” said Andy Jassy, chief executive officer of AWS. “The breadth and depth of AWS services enable Takeda to quickly and efficiently discover, develop,

Arrowhead’s New Deal With Takeda Strengthens The Company’s Value Proposition (NASDAQ:ARWR)

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Arrowhead Pharmaceuticals (ARWR) is a long-term holding of mine that just recently announced a partnership deal with Takeda (NYSE:TAK) for its ARO-AAT developmental stage therapy. I love this deal and think it yet again shows how well management is strategically and efficiently advancing an impressive pipeline through clinical development.

Arrowhead’s Deal with Takeda is a Win-Win for the Company

On October 8, Arrowhead announced that it had struck a deal with Takeda to co-develop and co-commercialize ARO-AAT, the company’s developmental therapy to treat alpha-1 antitrypsin-associated liver disease (AATLD). The partners will split US profits 50/50, and Takeda received an exclusive license to the therapy in the rest of the world for which Arrowhead will receive 20-25% royalties on net sales.

In exchange for this deal, Takeda is paying Arrowhead $300 million upfront and up to $740 million more in various potential developmental, regulatory, and commercial milestone payments.

I described the ARO-AAT opportunity in my prior article. AATLD…

is a genetic disease that results in the production and accumulation of a mutant Z-AAT protein that causes severe liver and lung damage. This is a serious unmet medical need because, while the lung manifestations can be treated with AAT augmentation therapy, there is no effective treatment for liver manifestations of the disease short of a liver transplant.

Arrowhead has already completed a positive Phase 1 trial and now has 2 additional trials of the therapy ongoing – a Phase 2/3 that could prove to be pivotal and an open-label Phase 2. We should start seeing some data from these trials late this year or early next year. I’ve seen estimates for peak sales of ARO-AAT ranging from $600 million up to $2.5 billion, so it’s clear ARO-AAT could have a meaningful impact for the company if approved.

Figure 1: Slide on ARO-AAT