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Takeda weighing sale of Western European drug assets in light of Shire purchase: Reuters
Posted on Thursday, 18 July 2019 13:53
Japanese drug maker Takeda Pharmaceuticals is planning a sale of its Western European portfolio in a deal that could be worth around EUR 1.50 billion, Reuters reported, citing people familiar with the matter.

The sources observed that information packages have been sent out to interested parties, including industry players and private equity firms such as Zentiva, Recordati, Cinven and Bain Capital.

Takeda’s over-the-counter drugs and prescription medicines could potentially be split and sold to two different sets of bidders, the sources noted.

According to these people, JPMorgan has been hired to work on the auction and is expecting offers to be tabled after summer.

Takeda is looking to cut debts following its GBP 46.00 billion takeover of Shire, bringing its total obligations to JPY 5,700 billion (USD 52.70 billion) at 31st March 2019.

In addition to the reported sale of the Western European assets, the company is planning a disposal of its Latin American portfolio worth about USD 1.00 billon and in the final stages of an auction, with EMS seen as the leading bidder.

Reuters reported that the patents for most of the assets being mandated for a sale in Europe have ran out and therefore can be copied by generic drug makers.

The unit recorded annual earnings before interest, taxes, depreciation and amortisation of EUR 160.00 million, the sources added.

Shares in Takeda closed down slightly to JPY 3,790 yesterday, giving the business a market capitalisation of JPY 5,830 billion.

There have been 1,214 deals featuring pharmaceutical and medicine manufacturers announced worldwide in 2019 to date, according to Zephyr, the M&A database published by Bureau van Dijk.

Bristol-Myers Squibb picked up Celgene for USD 74.00 billion in the largest of these, followed by AbbVie, via Venice Subsidiary, buying Allergan for USD 63.53 billion, in the only two deals to exceed USD 50.00 billion to date.

© Zephus Ltd