Takeda Pharmaceutical has agreed to sell a selection of the over-the-counter (OTC) and prescription drugs it markets in Europe to fast-growing Danish pharma Orifarm for a total of about $670 million.

The deal will see Orifarm take about 110 products, including OTC, food supplements and drugs in the respiratory, anti-inflammatory, cardiovascular and endocrinology treatment areas, which  are sold mostly in Denmark, Norway, Belgium, Poland, Finland, Sweden, the Baltics and Austria.

The portfolio generated net sales of approximately $230 million in fiscal year 2018, driven by strong sales of cough/cold and vitamin OTC brands as well as prescription products Warfarin and Levaxin.

In addition, Takeda will transfer two manufacturing sites in Denmark and Poland. The parties will enter into additional manufacturing and supply agreements, under which Takeda will continue to make selected products on behalf of Orifarm.

Under the terms of the deal, Orifarm will pay approximately $505 million in cash to Takeda on closing, with about $70 million in non-contingent cash due to be paid within four years. Takeda may also receive up to another $95 million in potential milestone payments.

The transaction is expected to close by the end of the company’s current fiscal year, which ends Mar. 31, 2021, subject to customary conditions and regulatory approvals. About 600 employees will transfer to Orifarm upon completion.

“These divestments will enable us to further prioritize and reinforce efforts in our core business areas” said Giles Platford, Takeda’s president, Europe & Canada business unit.

The move continues the Japanese drugmaker’s divestment strategy as it chooses to simplify its portfolio and focus on the areas of gastroenterology, rare diseases, plasma-derived therapies, oncology and neuroscience.

In the past twelve months, Takeda has made a series of divestments to meet its goal of selling about $10 billion in non-core assets. The Osaka-based company intends to use the proceeds to continue to reduce its debt.

Last month, Takeda announced it would sell its non-core products in Latin America to Brazil’s Hypera Pharma for $825 million. The Japanese pharma also closed on two other transactions in March – the sale of non-core assets in the Russia-CIS region to Germany’s Stada for $660 million, and in countries spanning the Near East, Middle East and Africa to Swiss pharma group Acino for more than $200 million.