Takeda looking to divest emerging-market assets in wake of Shire acquisition

According to people familiar with the matter, Takeda is mulling a sale of some emerging-market drugs as the company looks to find ways to cut debt after its $62-billion takeover of Shire earlier this month, Bloomberg reported Monday. A spokeswoman for Takeda stated that "no decisions have been made regarding specific assets for potential disposal at this stage." 

The sources said Takeda is working with advisors to assess interest in emerging-market assets it acquired through its Nycomed acquisition in 2011, adding that the products, which include over-the-counter (OTC) and prescription medicines, could sell for about $3 billion. However, the people cautioned that deliberations are still at an early stage, with no guarantee that they will lead to a transaction.

Earlier this month, Takeda CEO Christophe Weber indicated that he wants to offload $10 billion worth of "non-core products" as part of efforts to cut the nearly $31 billion in debt incurred as a result of the Shire deal, which led to a recent downgrade of the Japanese drugmaker's credit rating. Weber did not specify which assets would be divested, but has recently suggested the company is unlikely to dispose of its OTC business.  

Reports last year said Takeda was evaluating options for its European OTC segment, and has also been considering offloading Shire's eye-care business, including the dry-eye disease treatment Xiidra (lifitegrast), as well as Shire's recombinant human parathyroid hormone Natpara.

Register as Visitor to CPhI China 2019!