Company: TAK
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001395064-25-000154
Chunk: 43

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-10-30
Form: 6-K
Chunk 43
---
 contingent consideration arrangements |        |     | Equity instruments |        |
| As of the beginning of the period                                                                                                          |     |                                                                        | 10,197 |     |                    | 73,614 |
| Changes recognized as finance income or finance expenses                                                                                   |     |                                                                        |    479 |     |                    |      — |
| Changes in fair value of financial assets associated with contingent consideration due to other elements than time value                   |     |                                                                        |   -750 |     |                    |      — |
| Changes in fair value of financial assets measured at fair value through OCI and exchange differences on translation of foreign operations |     |                                                                        |    -23 |     |                    | -6,014 |
| Purchases                                                                                                                                  |     |                                                                        |      — |     |                    |     52 |
| Sales                                                                                                                                      |     |                                                                        |      — |     |                    |    -52 |
| Transfers from investments accounted for using the equity method                                                                           |     |                                                                        |      — |     |                    |    591 |
| Transfers to investments accounted for using the equity method                                                                             |     |                                                                        |      — |     |                    | -1,182 |
| As of the end of the period                                                                                                                |     |                                                                        |  9,902 |     |                    | 67,009 |

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Translation for reference purpose only

(5) Financial liabilities associated with contingent consideration arrangements

Financial liabilities associated with contingent consideration arrangements represent consideration related to business combinations or license agreements that are payable only upon future events such as the achievement of development milestones and sales targets, including pre-existing contingent consideration arrangements of the companies that are acquired by Takeda. At each reporting date, the fair value of financial liabilities associated with contingent consideration arrangements is re-measured based on risk-adjusted future cash flows discounted using an appropriate discount rate.

As of September 30, 2025, the balance primarily relates to pre-existing contingent consideration arrangements from historical acquisitions.

The fair value of financial liabilities associated with contingent consideration arrangements could increase or decrease due to changes in certain assumptions which underpin the fair value measurements. The assumptions include probability of milestones being achieved.

The fair value of financial liabilities associated with contingent consideration arrangements are classified as Level 3 in the fair value hierarchy. The following table shows a reconciliation from the opening balances to the closing balances for financial liabilities associated with contingent consideration arrangements for the six-month period ended September 30, 2025. There are no