Takeda is expected to receive around $562m in an upfront payment, subject to customary legal and regulatory closing conditions
Cheplapharm building in a business park in Greifswald. (Credit: Nancy1007/Wikipedia.)
Japanese pharmaceutical company Takeda has agreed to sell its portfolio of select non-core prescription pharmaceutical products sold predominantly in Europe and Canada to Cheplapharm.
Germany-based speciality pharmaceutical company Cheplapharm holds 25 years of experience in acquiring, integrating and developing pharmaceutical products.
Under the terms of the sale agreement, Takeda is expected to receive around $562m in an upfront payment, subject to customary legal and regulatory closing conditions.
The transaction is not anticipated to include any employee transfers and is expected to be completed by the end of Fiscal Year 2020, subject to customary closing conditions and regulatory approvals.
Takeda EUCAN president Giles Platford said: “These divestments represent another important milestone in our portfolio simplification and optimization strategy as we position Takeda for continued success across our five key business areas: Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies, Oncology and Neuroscience.
“We are pleased to have found a partner in Cheplapharm who shares our commitment to patient care and has the experience and resources to continue investing in these important products well into the future for the benefit of patients.”
The transaction with Cheplapharm to strengthen Takeda’s Europe and Canada Business Unit
Takeda’s portfolio of non-core prescription pharmaceutical products to be divested to Cheplapharm comprises various therapeutic categories, mostly marketed in Europe and Canada.
The therapeutic categories include cardiovascular or metabolic and anti-inflammatory products along with Calcium. The portfolio is said to have generated around $260m in net sales in FY 2019.
The sale is expected to further strengthen Takeda’s Europe and Canada Business Unit (EUCAN) and supports the company’s on-going divestiture program.
In August this year, the company has agreed to sell its consumer healthcare business to Blackstone for $2.3bn. In June, the Japanese firm divested its portfolio of non-core assets in the Asia Pacific region to Celltrion for $278m, and in April, Takeda agreed to sell its non-core OTC products in Europe to Orifarm for nearly $670m.
Furthermore, Takeda announced the sale of its Latin American non-core products to Hypera Pharma for $825m in March and completed the sale of non-core assets in Russia-CIS region to STADA and in Near East, Middle East and Africa region to Acino.
Takeda chief financial officer Costa Saroukos said: “Today’s announcement allows Takeda to continue to be patient-focused as we streamline and optimize our portfolio according to our global long-term strategy.
“While the trusted products included in the sale address key patient needs in these countries, they are outside of our core business areas of focus. We are confident that Cheplapharm is the right partner to ensure patients continue to have access to these products.”