Takeda Completes Divestments for a Combined $1.25 Bn

By Miranda Greenberg -

February 4, 2021

As part of ongoing divestment program of non-core assets following its $62-billion acquisition of Shire in 2019, Takeda Pharmaceutical has completed two separate deals to divest non-core assets totaling a combined $1.25 billion.

Deal with Hypera Pharma

In the first deal, Takeda has completed its previously announced sale of a portfolio of select products sold in Latin America to Hypera Pharma, a Brazilian pharmaceutical company with a position in branded prescriptions, consumer health, and branded generics, for a total value of $825 million. The divestment agreement was first announced in March 2020.

The divested portfolio includes select over-the-counter and prescription pharmaceutical products sold in Brazil, Mexico, and other South American, Central American and Caribbean countries, Close to 300 Takeda commercial employees will transition with the divested portfolio. As part of a manufacturing and supply agreement, Takeda will continue to exclusively manufacture the divested products.

Deal with Corza Health

In the second deal, Takeda has completed its previously announced sale of TachoSil, a fibrin sealant patch to control bleeding post-surgery, to Corza Health for EUR 350 million ($421 million).

Under the transaction, Corza has acquired the assets and licenses that support the development and commercialization of TachoSil while Takeda maintains ownership of a manufacturing facility in Linz, Austria. Takeda has entered into a long-term manufacturing and supply agreement, under which it will continue to exclusively manufacture TachoSil products and supply them to Corza.

Divestment program

These divestments follow Takeda’s $62-billion acquisition of Shire in 2019 and is part of a plan to reduce the company’s debt and improve cash flow by reaching a target of 2x net debt/adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) within FY 2021 to FY 2023.

Takeda reports that it has exceeded its initial $10 billion non-core asset divestiture target and has announced 11 deals since the closing of its acquisition of Shire in January 2019 for a total aggregate value of up to approximately $11.6 billion.

Source: Takeda (Hypera) and Takeda (Corza)