logo
Plus   Neg
Share
Email

Takeda To Sell Select Products To STADA For $660 Mln; Stock Up

Takeda Pharmaceutical Company Limited (TKPYY.PK) announced Tuesday that it has entered into an agreement to divest a portfolio of select products to STADA Arzneimittel AG for a total value of $660 million.

The portfolio includes about 20 select over-the-counter or OTC and prescription pharmaceutical products exclusively sold in Russia, Georgia, and a number of countries from within the Commonwealth of Independent States.

Under the terms of the agreement, STADA will acquire the rights, title, and interest to the products in the portfolio exclusive to these countries.

The transaction is expected to close in the fourth quarter of fiscal 2019, subject to the satisfaction of customary closing conditions. Until then, the products will continue to be made avaliable to patients and manufactured and supplied by Takeda.

The portfolio to be divested to STADA includes OTC Vitamins and Food Supplements, plus select products within the Cardiovascular, Diabetes, General Medicine, and Respiratory therapeutic areas.

Takeda intends to use the proceeds from this divestiture to continue to reduce its debt and accelerate deleveraging.

The company expects to give opportunity to about 500 employees supporting the divested assets to transition over to STADA at closing.

Further, Takeda and STADA will enter into manufacturing and supply agreements under which Takeda will continue to manufacture and supply the products to STADA.

The sale is part of its goal to divest approximately $10 billion in non-core assets to focus on its five key business areas following its acquisition of Shire.

Takeda completed the divestiture of Xiidra to Novartis for up to $5.3 billion in July, announced the sale of TachoSil to Ethicon for $400 million in May, and last month announced its sale of non-core assets in countries spanning Near East, Middle East and Africa to Acino for over $200 million.

In Japan, Takeda shares were gaining around 5.1 percent to trade at 4,204 yen.

For comments and feedback contact: editorial@rttnews.com

Business News

RELATED NEWS
Follow RTT
>