Takeda has entered into an agreement to divest a portfolio of select non-core over-the-counter (OTC) and prescription pharmaceutical products sold exclusively in Asia Pacific to Celltrion.
Takeda will receive $266 million upfront in cash and up to an additional $12 million in potential milestone payments, subject to customary legal and regulatory closing conditions.
The portfolio includes a variety of OTC products and pharmaceutical products in the cardiovascular, diabetes and general medicine therapeutic areas sold predominantly in [Australia, Hong Kong, Macau, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand], which are part of Takeda’s Growth & Emerging Markets Business Unit.
The portfolio generated FY 2018 net sales of approximately $140 million, driven by strong sales of prescription products Nesina and Edarbi.
While the products included in the sale continue to play important roles in meeting patient needs in these countries, they are outside of Takeda’s chosen business areas – Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies, Oncology and Neuroscience – that are core to its global long-term growth strategy.
Costa Saroukos, Chief Financial Officer of Takeda, said: “This announcement marks continued progress on our commitment to divest non-core products as we remain focused on maintaining our financial discipline and rapid deleveraging following our acquisition of Shire.
“One of several transactions since the launch of the divestment program, the sale announced today will further focus Takeda on our five key business areas and our pipeline of innovative medicines. We look forward to continuing to execute and deliver on Takeda’s financial commitments, including paying down debt and focusing our portfolio.”
This transaction is part of an ongoing divestment programme. In March 2020, Takeda completed sales of non-core assets spanning the Russia-CIS region to STADA for $660 million and in countries spanning the Near East, Middle East and Africa region to Acino for $200 million.
In July 2019, the company completed the divestiture of Xiidra to Novartis for up to $5.3 billion.
Additionally, earlier this year, Takeda announced the sales of non-core products in Latin America to Hypera Pharma for $825 million and in Europe to Orifarm Group for up to approximately $670 million, including the sale of two manufacturing sites in Denmark and Poland.