Takeda Pharmaceutical has agreed to sell a portfolio of certain non-core prescription pharma products sold mainly in Europe and Canada to German pharma company Cheplapharm for about $562 million.
The portfolio to be offloaded to Cheplapharm is made up of non-core prescription pharma products in a range of therapeutic segments. This includes cardiovascular/metabolic and anti-inflammatory products along with calcium, said Takeda Pharmaceutical.
In FY 2019, the portfolio registered net sales of around $260 million.
According to Takeda Pharmaceutical, although the products involved in the sale meet key patient needs in Europe and Canada, they are outside of its five core business areas.
The Japanese pharma giant said that with a more focused portfolio, the sale will further help its Europe & Canada Business Unit (EUCAN) to concentrate on and drive strategic key growth areas.
Costa Saroukos – Chief Financial Officer of Takeda Pharmaceutical 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.”
In April, Takeda Pharmaceutical signed a deal to sell the non-core over-the-counter (OTC) products of its EUCAN unit to Orifarm Group.
Takeda Pharmaceutical said that it plans to use the proceeds from the latest deal to bring down its debt and speed up de-leveraging toward its target of 2x net debt/adjusted EBITDA within FY 2021 to 2023.
Giles Platford – President of Takeda Pharmaceutical EUCAN 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 deal, which is subject to the meeting of customary closing conditions and receipt of the necessary regulatory clearances, is expected to be wrapped up by the end of FY 2020 (ending March 2021).
Last month, Takeda Pharmaceutical agreed to divest its consumer healthcare business to Oscar A-Co KK, a company controlled by funds managed by The Blackstone Group and its affiliates (collectively Blackstone) for $2.3 billion.