The sale of consumer health care business will further strengthen Takeda’s focus on five key business areas, and continue serving in Japan and Asia
Japanese pharmaceutical company Takeda has agreed to sell its subsidiary Takeda Consumer Healthcare Company (TCHC) to Oscar A-Co KK for JPY 242bn ($2.3bn).
Oscar A-Co KK is controlled by funds managed by The Blackstone, an investment firm with experience in the healthcare sector.
Under the transaction, Blackstone will acquire Takeda’s portfolio of several over-the-counter (OTC) medicines and health products. The portfolio has generated a total of more than JPY 60bn ($566m) in revenues, in the year 2019.
The regional brands under TCHC include Alinamin, said to be the first vitamin B1 preparation in Japan, and Benza, a medication for the cold.
Blackstone is expected to close the transaction by 31 March 2021, subject to customary legal and regulatory closing conditions. The company intends to develop the business together with current TCHC management and continue hiring its employees.
Takeda president and chief executive officer Christophe Weber said: “Today’s transaction will provide TCHC with the ownership, resources and strategic focus to continue to thrive and meet the needs of customers, while further sharpening Takeda’s strategic focus and commitment to financial discipline and transforming science into life-changing medicines.
“TCHC 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 health care market in Japan, the ownership transition will benefit both TCHC and Takeda.”
Takeda established TCHC to develop the consumer health care business in Japan
Takeda has established its subsidiary TCHC in April 2017, as an individual business to further develop the consumer health care business in Japan. The business is currently focused on developing medicines across its five business areas to address the unmet patient needs.
The transaction is part of Takeda’s divestiture programme, focused on the optimisation of its portfolio to complement its global long-term growth strategy and continuous supply of critical products.
After the sale, TCHC is expected to benefit from the Blackstone’s enhanced strategic focus, resources and speed for the growth and development of its brands and to address the dynamic market conditions and customer needs.
Furthermore, Takeda has agreed to divest three different non-core asset portfolios in the Asia Pacific, Europe, and Latin America regions in 2020. The company has also completed the sale of its non-core assets in the Russia-CIS region and countries in the Near East, Middle East and Africa region.
Weber added: “We are confident that under Blackstone, TCHC will be well-positioned to continue growing and developing its product offerings in the years to come to address the evolving needs of consumers.”