The Japanese pharma has agreed a price of 242 billion Japanese Yen, or $2.3 billion for the sale of Takeda Consumer Healthcare Co. (TCHC) to Oscar A-Co KK, a company controlled by funds managed by Blackstone. According to initial reports, Takeda was seeking up to 400 billion Yen when it put TCHC up for sale in April.

Established as a separate business in April 2017, TCHC’s portfolio comprises a range of over-the-counter (OTC) medicines and health products, including top seller Alinamin – Japan’s first vitamin B1 preparation – and cold remedy Benza. The division generated revenues of more than 60 billion Yen in the 2019 fiscal year.

Takeda said increasing competition in the consumer healthcare market in recent year,s along with customers’ needs continuing to become more diverse, meant that TCHC needed to become much more agile and respond faster to market demands.

Commenting on the deal, Atsuhiko Sakamoto, head of private equity in Blackstone Japan, said: “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.”

The acquisition marks Blackstone’s second private equity transaction in Japan’s healthcare sector following the acquisition of Ayumi Pharmaceutical in 2019. For Takeda, the sale represents another step in its divestment program as it seeks to boost its financial position and reduce the debt incurred from its $59 billion purchase of Shire in January 2019.

Business of the Tokyo-based group is focused on five key areas: gastroenterology, rare diseases, plasma-derived therapies, oncology and neuroscience. So far this year, Takeda has agreed three transactions, with Celltrion, Orifarm and Hypera Pharma, worth nearly $1.8 billion in total.

Author: Elaine Burridge, Freelance Journalist