Takeda sells select non-core assets in Europe to Cheplapharm for about $562 mn

Takeda Pharmaceutical Company announced that it has entered into an agreement to divest a portfolio of select non-core prescription pharma products sold predominantly in Europe and Canada to Cheplapharm, a specialty pharma company headquartered in Germany. Takeda will receive an upfront payment of approximately $562 million, subject to customary legal and regulatory closing conditions.

The portfolio to be divested to Cheplapharm comprises non-core prescription pharma products in a variety of therapeutic categories sold predominantly in Europe and Canada. This includes cardiovascular/metabolic and anti-inflammatory products along with calcium. The portfolio generated FY 2019 net sales of approximately $260 million.

Last month, Takeda announced an agreement to divest Takeda Consumer Healthcare Company to Blackstone for approximately $2.3 billion. In June, Takeda agreed to divest a portfolio of non-core assets sold exclusively in the Asia Pacific region to Celltrion for up to $278 million; in April, Takeda announced the sale of non-core OTC products in Europe to Orifarm Group for up to approximately $670 million, including the sale of two manufacturing sites in Denmark and Poland; and in March, Takeda announced the sale of non-core products in Latin America to Hypera Pharma for $825 million, as well as completed the previously announced sales of non-core assets spanning the Russia-CIS region to STADA and in countries spanning the Near East, Middle East and Africa region to Acino.

Giles Platford, President, EUCAN, Takeda, said, “These divestments represent another important milestone in our portfolio simplification and optimisation 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.”

There are no anticipated employee transfers in connection with this transaction.

The transaction is expected to close by the end of the Fiscal Year 2020 (ending March 2021), subject to the satisfaction of customary closing conditions and receipt of required regulatory clearances. Until then, the products will continue to be made available to patients and manufactured and supplied by Takeda.

Takeda intends to use the proceeds from this transaction to reduce its debt and accelerate de-leveraging toward its target of 2x net debt/adjusted EBITDA within Fiscal Year 2021 to 2023.