Takeda to divest consumer healthcare business to Blackstone for $2.3bn

Japanese pharma giant Takeda Pharmaceutical has agreed to sell its consumer healthcare business to Oscar A-Co KK, a company controlled by funds managed by The Blackstone Group and its affiliates (collectively Blackstone) for JPY 242 billion ($2.3 billion).

The business being divested- Takeda Consumer Healthcare Company (TCHC) is focused on the consumer health care market mainly in Japan. It comprises a range of over-the-counter (OTC) medicines and health products that registered total revenues of more than JPY 60 billion ($560 million) in fiscal year 2019.

The most popular regional brand of Takeda Consumer Healthcare are Alinamin, its most-selling product, which is also Japan’s first vitamin B1 preparation sold in the form of tablets and drinks. The other major brand of the business is a cold remedy called Benza.

Blackstone plans to develop the consumer healthcare business along with the latter’s management besides retaining its employees.

Atsuhiko Sakamoto – Blackstone Japan Head of Private Equity said: “We are privileged to announce this partnership and invest in the company’s plans to become the leading consumer healthcare business in Japan. TCHC is well-positioned to grow its established brands in Japan and launch new and expanded product offerings.

“We see tremendous potential for TCHC in Japan and throughout Asia, and we are confident that Blackstone’s global network and expertise in the sector can accelerate TCHC’s growth.”

Takeda to divest consumer healthcare business to Blackstone for $2.3bn. Photo courtesy of J o/Wikipedia.org.

Takeda Consumer Healthcare was established as a separate business in 2017 for the further development of the Japanese pharma giant’s consumer healthcare business in Japan. Currently, the business is said to be focused on highly innovative medicines across its five major business areas and engaged in addressing significant unmet patient requirements in these fields.

The sale of the consumer healthcare subsidiary is part of Takeda’s divestiture program, which is focused on streamlining its portfolio to align with its global long-term growth strategy and deliver uninterrupted access and supply of key products to patients.

In April 2020, Takeda Pharmaceutical signed a deal to sell a portfolio of 110 non-core OTC and prescription pharmaceutical products it sells in Europe along with a couple of manufacturing plants in Denmark and Poland to Orifarm Group for up to $670 million.

Christophe Weber – Takeda Pharmaceutical President and CEO 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. We are confident that under Blackstone, TCHC will be well-positioned to continue growing and developing its product offerings in the years to come to address the evolving needs of consumers.”

The deal is expected to close by 31 March 2021 and will be subject to the meeting of customary legal and regulatory closing conditions.