Takeda continues divestment of non-core med assets

Getting shed of another batch of non-core products, Japan’s largest drugmaker Takeda Pharmaceutical (TYO: 4502) has entered into an agreement to divest a portfolio of select over-the-counter (OTC) and prescription pharmaceutical products sold exclusively in Asia Pacific to South Korea-based Celltrion (Kosdaq: 068270.

Takeda will receive $266 million upfront in cash and up to an additional $12 million in potential milestone payments, subject to customary legal and regulatory closing conditions. Takeda, which is carrying a load of debt as a result of its $62 billion buy of Shire last year, has set a goal of around $10 billion in asset sales.

Takeda has made strong progress on its ongoing divestiture program. In March 2020, it completed sales of non-core assets spanning the Russia-CIS region to Stada Arzneimittel (SAZ: Xetra) for $660 million and in countries spanning the Near East, Middle East and Africa region to Acino for $200 million. In July 2019, Takeda completed the divestiture of Xiidra (lifitegrast ophthalmic solution) to Novartis (NOVN: VX) for up to $5.3 billion. Additionally, earlier this year, Takeda announced the sales of non-core products in Latin America to Hypera Pharma for $825 million and in Europe to Orifarm Group for up to about $670 million, including the sale of two manufacturing sites in Denmark and Poland.