In $660 Million Deal, Takeda Offloads Non-Core Assets to Germany's STADA

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Takeda Pharmaceutical will unload a portfolio of over-the-counter and prescription pharmaceutical products to Germany-based STADA Arsneimittel AG for$660 million as the company continues to pare down debt from its $62 billion acquisition of Shire.

The portfolio of drugs sold to STADA is for products exclusively sold in Russia, Georgia and “a number of countries from within the Commonwealth of Independent States” that forms part of Takeda’s Growth & Emerging Markets Business Unit. The countries in the Commonwealth are Armenia, Azerbaijan, Belarus, Kazakhstan and Uzbekistan.

The acquisition of Shire placed about $30 billion of debt on the back of Takeda. The company has been looking to pare down that debt as it adjusts to the new size and scope of its portfolio from the Shire deal. Since the Shire acquisition, Takeda has been looking to sell off about $10 billion worth of non-core assets. In July, BioSpace reported that Takeda had sent out information packages of the assets up for sale to potential buyers, including smaller pharma companies and private equity firms. STADA was among those companies that Takeda was allegedly wooing at the time.

The portfolio to be divested to STADA includes over-the-counter vitamins and food supplements, as well as select products within the cardiovascular, diabetes, general medicine and respiratory therapeutic areas, Takeda said. The portfolio’s growth is driven by sales of products such as Cardiomagnyl, and other strong regional brands, the company added. Last year, the portfolio of products sold to STADA. Additionally, Takeda said it anticipates that approximately 500 employees supporting the divested assets will be given the opportunity to transition over to STADA when the deal is finalized. As part of the deal, Takeda and STADA will enter into manufacturing and supply agreements under which Takeda will continue to manufacture and supply the products to STADA.

“Takeda remains committed to the emerging markets, Russia and the countries included in this agreement. We will continue to increase patient access to our portfolio of highly innovative medicines across this region through our commercial activities and access to medicines program,” Ricardo Marek, president of Takeda’s Growth & Emerging Markets Business Unit, said in a statement. “As we execute on our divestiture goals, we continue to work to ensure that each transaction aligns with Takeda’s values. We are confident that STADA is well placed to provide patients with uninterrupted access to the divested products – a top priority for Takeda – and anticipate most of the employees supporting the divested assets will be given the opportunity to transition over to STADA once the divestiture is completed.”

This week’s divestiture marks Takeda’s fourth divestment transaction in the past six months, the company said. In addition to reducing debt, the divestitures allow the company to remain focused on its five key business areas of gastroenterology, rare diseases, plasma-derived therapies, oncology and neuroscience. Last month, Takeda sold off non-core assets to Acino for $200 million. The assets that made up that sale are marketed in countries across the Near and Middle East, as well as parts of Africa. Combined, the portfolio of products to be divested to STADA and Acino generated revenues of approximately $300 million last year, Takeda noted. Other divestitures include the sale of Xiidra (lifitegrast ophthalmic solution) 5% product to Novartis. That deal was for $3.4 billion up front in cash and up to an additional $1.9 billion in potential milestone payments. Also, the company sold TachoSil to Ethicon for $400 million in May.

Costa Saroukos, Takeda’s chief financial officer, said the sale of assets to STADA is the “latest step in Takeda’s effort to simplify our portfolio” and continue to invest in its key business areas.

“We are making strong progress towards executing our strategy and delivering enhanced value for patients and Takeda shareholders,” Saroukos said in a statement.