BRIEF—Takeda divests TachoSil to Ethicon for around $400 million

As well as  selling rights to an eye-drug to Novartis for up to $5.3 billion, Japan’s Takeda announced that it is divesting its TachoSil Fibrin Sealant Patch to Ethicon as part of its strategy to focus on business areas core to its long-term growthand facilitate rapid deleveraging following its acquisition of Shire.

Takeda will receive around $400 million upfront in cash from Ethicon, a unit of Johnson & Johnson.

Takeda recorded full year adjusted net sales for TachoSil of approximately $155 million in the fiscal year ended March 31, 2018.

Upon close, approximately 80 employees will transition to Ethicon.

Takeda intends to use the proceeds from these divestitures to reduce its debt and accelerate deleveraging toward its target of 2.0x net debt/adjusted EBITDA in the medium term.

Takeda is committed to rapid deleveraging driven by strong cash flow and divestiture proceeds, while also simplifying its portfolio.