Takeda Completes Divestments for a Combined $4.1 BnBy
As part of an ongoing divestment program of non-core assets following its $62-billion acquisition of Shire in 2019, Takeda Pharmaceutical has completed three divestments totaling approximately $4.1billion.
$2.2-Bn Deal with Blackstone
In the first deal, Takeda completed its previously-announced sale of Takeda Consumer Healthcare Company Limited (TCHC) to Oscar A-Co KK, a company controlled by funds managed by Blackstone, a private investment firm, for a total value of JPY 242 billion ($2.2 billion). This divestment agreement was first announced in August 2020.
The divested portfolio included a variety of over-the-counter (OTC) medicines and health products that generated total revenues of over JPY 60 billion ($543 million) in fiscal year 2019.
The former TCHC will operate as Alinamin Pharmaceuticals.
$1.2-Bn Deal with Teijin Pharma
In the second deal, Takeda completed the asset transfer of select diabetes products in Japan to Teijin Pharma, a Tokyo-based pharmaceutical company, for JPY 133.0 billion ($1.2 billion). This divestment agreement was first announced in February 2020.
The portfolio divested to Teijin Pharma is comprised of four products for treating Type 2 diabetes products sold in Japan: (1) Nesina (alogliptin) (2) Liovel (alogliptin/pioglitazone); (3) Inisync (alogliptin/metformin); and Zafatek (trelagliptin). The products generated total sales of approximately JPY 30.8 billion ($278 million) in FY 2019. Takeda says the products are outside of its core business areas: gastroenterology, rare diseases, plasma-derived therapies, oncology, and neuroscience.
Takeda will continue to manufacture and supply the products and provide the distribution channel to Teijin Pharma. Takeda will, for the time being, continue hold the marketing authorizations of the transferred brands, and the timing of the transfer of the marketing authorizations will be determined later (as reported on April 1, 2021).
$670-M Deal with Orifarm
In the third deal, Takeda completed the sale of approximately 130 select OTC and prescription pharmaceutical products sold in Europe and two manufacturing sites in Denmark and Poland to Orifarm Group, an Odense, Denmark-based generic-drug company.
The portfolio includes OTC products and food supplements and prescription products in the respiratory, anti-inflammatory, cardiovascular, and endocrinology therapeutic areas sold predominantly in Denmark, Norway, Belgium, Poland, Finland, Sweden, the Baltics and Austria.
The portfolio generated fiscal year 2020 net sales of approximately $240 million.
Following the sale of two manufacturing sites in Denmark and Poland to Orifarm, Takeda has entered into a manufacturing and supply agreement, under which Takeda will continue to manufacture select products on behalf of Orifarm. In addition, approximately 600 employees from the manufacturing sites, sales and marketing professionals and others supporting the divested portfolio and manufacturing sites have transitioned to Orifarm.
In all, Takeda has exceeded its $10 billion non-core asset divestiture target made following its acquisition of Shire in 2019 and has announced 12 deals since January 2019 to date (as of April 1, 2021) or a total aggregate value of up to approximately $12.9 billion.
These divestments are part of a plan to reduce the company’s debt and improve cash flow by reaching a target of 2x net debt/adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) within FY 2021 to FY 2023.