Takeda Moves Forward on Divesting Non-Core Assets for $884 MBy
As part of ongoing divestment program of non-core assets following its $62-billion acquisition of Shire in 2019, Takeda Pharmaceutical has moved forward with two additional divestment deals totaling a combined $844 million.
In the first deal, Takeda completed its $562-million divestment of select products to Cheplapharm, a specialty pharmaceutical company headquartered in Greifswald, Germany. The portfolio divested includes 16 non-core prescription pharmaceutical products in a variety of therapeutic categories sold predominantly in Europe. They include cardiovascular/metabolic and anti-inflammatory products along with calcium. This divestment agreement was first announced in September 2020.
In a separate development, Takeda has agreed to divest a portfolio of non-core prescription pharmaceutical products for $322 million to Hasten Biopharmaceutic, a company funded by Feidong County of Hefei City, China and established by Ray Capital Management, a Hong Kong-based private investment partnership. The portfolio to be divested includes cardiovascular and metabolism products sold in mainland China. The portfolio generated fiscal year (FY) 2019 net sales of approximately $109.5 million.
Under the agreement, Hasten will acquire the rights, title, and interest to the products in the portfolio exclusive to China. Employees who are dedicated to the commercial support of these products will be transferred to Hasten. Takeda and Hasten have also entered into a manufacturing and supply agreement under which Takeda will continue to manufacture the portfolio of divested products and supply them to Hasten.
The agreement is expected to close by June 30, 2021, subject to the satisfaction of customary closing conditions, receipt of required regulatory clearances and, where applicable, satisfaction of local works council requirements. Until then, Takeda remains the owner of these products.
These divestments follow’s Takeda’s $62-billion acquisition of Shire in 2019 and is 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 2023.
Takeda reports that it has exceeded its initial $10 billion non-core asset divestiture target and has announced 10 deals since the closing of its acquisition of Shire in January 2019 for a total aggregate value of up to approximately $11.3 billion. See here for a listing of previous divestments.