Takeda Revises Lower First-Quarter Net Profit on Tax Provision

 Takeda Pharmaceutical Co. said Friday that it has revised lower its first-quarter net profit to Y137.68 billion ($1.25 billion) from Y200.38 billion previously, as it booked a provision for a potential tax payment.

The Japanese drug maker said earlier this week that it would book a Y63 billion provision related to potential taxes on a fee received by Shire PLC., which Takeda acquired in January 2019, following a decision by Irish Tax Appeals Commission.

In November 2018, Shire received a EUR398 million ($471 million) tax assessment from Irish Revenue Commissioners on a $1.635 billion fee that AbbVie Inc. paid to terminate an offer to buy Shire.

Takeda said earlier this week that the appeals commission upheld the revenue commissioners' position and that the Japanese drug maker intended to challenge the outcome through legal means.

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