In a big step towards its $ 10 billion divestiture target, Takeda has reached a deal to sell its Japanese consumer healthcare business, known for its over-the-counter products, to US private equity firm Blackstone Group. .
Takeda Consumer Healthcare Company was valued at around 242 billion yen ($ 2.28 billion), although that value is adjusted for net debt and working capital, according to Takeda.
The deal, which is expected to be concluded by the end of March 2021, is part of Takeda’s plan to lose 10 billion dollars in non-core assets to balance the debt incurred in the company’s $ 62 billion Acquisition of the County. The takeover made Takeda one of the top 10 international pharmaceutical companies, but also imposed net debt of $ 48 billion. Following the acquisition, Takeda focused on the following five areas: gastroenterology (GI), rare diseases, plasma-derived therapies, oncology and neuroscience.
Blackstone will acquire a portfolio of drugs and over-the-counter products that generated total sales of 60 billion yen ($ 567 million) last year, including Alinamin, TCHC’s top-selling product.
This is Takeda’s fourth deal this year to sell non-core assets. He also agreed to sell assets in Asia-Pacific to Celltrion for a maximum amount of $ 278 million in June; to European Orifarm for up to $ 670 million in April; and Latin American Hypera Pharma for $ 825 million in March. And less than a month ago, Takeda started offering early retirement to Japanese employees.
Last November, Takeda made a statement five-year plan for 14 growth marks with 20 potential additional indications, including budesonide, its potential drug for eosinophilic esophagitis, and TAK-788, a second-line drug for non-small cell lung cancer.
“TCHC has played an important role in Takeda’s long history, but with our growth strategy now focused on five key business areas – gastroenterology (GI), rare diseases, plasma-derived therapies, ‘oncology and neuroscience – and an increasingly competitive consumer healthcare market in Japan, the ownership transition will benefit both TCHC and Takeda, ”said Christophe Weber, President and CEO of Takeda, in a press release.