Blackstone Mooted as Buyer for Takeda’s OTC Arm
Japanese pharma Takeda is apparently winding down the asset-shedding drive it launched following the $59 billion acquisition of Shire. The company is currently said to be in talks to sell its domestic consumer health (OTC) business to US private equity investor Blackstone.
The deal with Blackstone is thought likely to be wrapped up by the end of August. Other interested companies reportedly included private equity investors Bain Capital and CVC Capital Partners.
Speculation varies as regards the selling price. While Kyodo News put the sum at 300 billion Japanese yen ($2.3 billion), Nikkei Asian Review said it was more likely to be in the range of billion yen ($2.37 billion). Both numbers are below analysts’ earlier estimates of 400 billion yen.
Takeda’s OTC franchise, which focuses on vitamin tablets and energy drinks, represents only 3% of the company’s last reported annual sales of 2.1 trillion yen, a relatively small business compared with its prescription drug activities.
On clinching the Shire deal, the drugmaker had said it planned to divest assets worth $10 billion, focusing on drugs outside its five key focal errors of gastroenterology, oncology, rare disease, neuroscience and plasma-based therapy targeted.
Up to now, Takeda has divested activities worth $7.7 billion. Previous deals with Germany’s Stada, Switzerland’s Acino International, Brazil’s Hypera Pharma. Denmark’s Orifarm and South Korea’s Celltrion focused mainly on the consumer emd
Early retirement offered to Japanese workers
Separately, Takeda has announced plans to pare down Japanese staff, in part by offering early retirement schemes. The “Future Career Program” will be available to workers in sales and administrative functions while excluding R&D or manufacturing, reports suggest.
The drugmaker did not disclose how many jobs it wants to eliminate, but said in announcing the Shire deal in 2018 it was targeting 6-7% of the workforce. As the end of the 2019-2020 fiscal year (Mar. 31), the global group employed 47,495 people, including 6,509 based in Japan.
Those employed by Takeda for at least three year can sign up for the plan between Sept. 28 and Oct. 16, and exit the company by Nov. 30. Along with severance pay, they will receive support in finding a new job.
Author: Dede Williams, Freelance Journalist
