Takeda To Divest Select OTC and Rx Products in Emerging Markets for $200 Million-PlusBy
Takeda Pharmaceutical has agreed to divest to Acino, a Zurich-based pharmaceutical company, a portfolio of select over-the-counter (OTC) and prescription pharmaceutical assets in a number of countries in the Near East, Middle East and Africa (NEMEA) for more than $200 million. The move is part of Takeda’s portfolio evaluation and optimization following its $62-billion acquisition of Shire, which was completed earlier this year (January 2019).
Takeda says the products being divested, which are part of its Growth and Emerging Markets Business Unit, are outside of its core business areas of gastroenterology, rare diseases, plasma-derived therapies, oncology, and neuroscience. The products being divested include approximately 30 select prescription pharmaceutical and OTC products sold in the NEMEA region. The following countries are included in the agreement: Egypt, Saudi Arabia, South Africa, Turkey, Ukraine and United Arab Emirates, as well as other countries.
Under the terms of the agreement, Acino will acquire the rights, title, and interest to the products in the portfolio exclusive to these countries. It is anticipated that primarily sales and marketing professionals supporting the portfolio will transition to Acino at the closing of the transaction. The parties will also enter into a multi-year manufacturing and supply agreement, under which Takeda will continue to manufacture the products on behalf of Acino.
The transaction is expected to close in the fourth quarter of fiscal year 2019 (January–March 2020), subject to the satisfaction of customary closing conditions, including receipt of applicable antitrust approvals. Until then, these products will continue to be made available by Takeda.
Takeda says it intends to use the proceeds from this divestiture to reduce debt and continue to deleverage toward its target of 2.0 times net debt/adjusted EBITDA (earnings before interest, tax, depreciation and amortization) over the next three to five years.
Source: Takeda Pharmaceutical