Takeda’s divestures to begin soon; US$ 3 billion of emerging market assets to be sold

By PharmaCompass

2019-01-24

Impressions: 119 Article

Japanese drugmaker Takeda Pharmaceutical has begun sale of some emerging-market drugs, as the company works at reducing its debt after the US$ 62 billion takeover of Irish drug major Shire Plc. According to a report, Takeda is working with Bank of America to gauge potential buyer interest in the emerging-market assets it acquired through its 2011 purchase of Swiss rival Nycomed.

Such medicines, including over-the-counter (OTC) and prescription drugs, could fetch about US$ 3 billion for Takeda. However, deliberations are at an early stage, sources told Bloomberg. Takeda is reportedly also working with JPMorgan Chase to evaluate options for its European OTC business.

“No decisions have been made regarding specific assets for potential disposal at this stage,” a spokeswoman for Takeda said in an emailed statement.

Takeda’s takeover of Shire was completed earlier this month. The acquisition has catapulted the Japanese drugmaker into the ranks of the world’s 10 biggest drugmakers. However, the acquisition has also increased Takeda’s borrowings, prompting S&P Global Ratings and Moody’s Investors Service to downgrade its credit rating.

In an interview, Christophe Weber, CEO of Takeda, has said the company wants to move quickly on asset sales. Takeda plans to sell off its overseas businesses where the company isn’t an industry leader and doesn’t have critical mass.

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