Takeda Pharmaceutical has agreed to divest its Japanese consumer healthcare business unit to Blackstone for $2.3bn.
Oscar A-Co KK, a company controlled by funds managed by The Blackstone Group and its affiliates, has signed an agreement to acquire Takeda’s wholly-owned subsidiary Takeda Consumer Healthcare Company (TCHC).
Under the deal, Blackstone will acquire a variety of over-the-counter medicines and health products from TCHC. These products generated total revenues of more than $566m in the fiscal year 2019.
TCHC’s major regional brands comprise Alinamin and Benza. Alinamin is claimed to be Japan’s first vitamin B1 preparation, while Benza is a cold remedy.
Blackstone stated that it aims to develop the business together with current TCHC management and continue its employees.
Subject to customary legal and regulatory closing conditions, the deal is expected to be completed by March 2021.
Takeda president and CEO 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.”
In April 2017, Takeda established TCHC as a separate business to further develop the consumer health care business in Japan.
The latest deal is part of Takeda’s divestiture programme that focuses on the optimisation of its portfolio to be in line with its global long-term growth strategy and distribute critical products to patients.
In June, Celltrion agreed to acquire Takeda’s portfolio of non-core assets in the Asia Pacific region for around $278m. In April, Orifarm Group agreed to acquire Takeda’s non-core products in Europe for $670m.
In March, Hypera Pharma agreed to acquire Takeda’s non-core products in Latin America for $825m. It also completed the divestment of non-core assets covering the Russia-CIS region to STADA and in covering spanning the Near East, Middle East and Africa region to Acino.
In June, Takeda entered into a more than $2bn worth deal with Neurocrine Biosciences to develop potential therapies for psychiatric disorders.