Takeda will sell a portfolio of approximately 110 select OTC and prescription pharmaceutical assets in Europe to Orifarm for a total value of up to $670m
Takeda Pharmaceutical Company headquarters in Chuo-ku, Osaka, Japan. (Credit: J o/Wikipedia.)
Japanese pharmaceutical firm Takeda has agreed to divest a portfolio of certain non-core over-the-counter (OTC) and prescription pharmaceutical products in Europe and manufacturing sites in Denmark and Poland to Orifarm, a Danish pharmaceutical company, for approximately $670m.
The portfolio to be divested includes a variety of OTC products and food supplements, along with select respiratory, anti-inflammatory, cardiovascular and endocrinology prescription products in Denmark, Norway, Belgium, Poland, Finland, Sweden, the Baltics and Austria.
Takeda Europe and Canada Business Unit president Giles Platford said: “These divestments will enable us to further prioritize and reinforce efforts in our core business areas.
“Throughout the robust sale process we conducted for these assets, we focused on finding the right partner to maximize the value of these trusted products and maintain continuity of supply for the patients and customers who depend on them. We are confident that Orifarm is the right partner for these regions.”
600 employees from Takeda’s assets to be divested will be transferred to the Orifarm
Takeda has announced a series of divestments in the past twelve months, with an aim to divest approximately $10bn in non-core assets and focus on its key business areas. The company intends to use the proceeds from its sale to reduce its debt.
Under the agreement, Takeda will sell a portfolio of approximately 110 select OTC and prescription pharmaceutical assets in Europe to Orifarm for a total value of up to $670m, subject to customary legal and regulatory closing conditions.
Orifarm will pay approximately $505m in cash and $70m in non-contingent cash, expected to be paid within four years after the closing of the transaction. The company will also pay an additional $95m in potential milestone payments.
In addition to the portfolio, Takeda will divest two manufacturing sites in Denmark and Poland to Orifarm, and both the parties will also sign an additional manufacturing and supply agreements, under which Takeda will continue to manufacture selected products for Orifarm.
In relation with the sale, approximately 600 employees from the manufacturing sites, sales and marketing professionals, and other select professionals working at manufacturing sites to be divested will be transferred to Orifarm at the closing of the transaction.
The transaction is expected to be completed by the end of Fiscal Year 2020, subject to the satisfaction of customary closing conditions, receipt of required regulatory clearances and, where applicable, compliance with local works council requirements.
Takeda chief financial officer Costa Saroukos said: “This transaction represents the continued execution of our strategy to simplify our portfolio and accelerate deleveraging.
“We remain focused on investing in our key business areas as we continue strengthening our position as a R&D-driven global biopharmaceutical leader and deliver enhanced value for patients and Takeda shareholders.”