Takeda to Sell OTC Drug Unit to Reduce Debts
Tokyo, April 24 (Jiji Press)--Takeda Pharmaceutical Co. <4502> is considering selling over-the-counter drug unit Takeda Consumer Healthcare Co., whose main products include Alinamin series energy drinks and Benza Block cold remedies, it was learned Friday.
The sale price is expected to reach around 300 billion yen to 400 billion yen, informed sources said.
Using proceeds from the planned sale of the subsidiary, the major Japanese drug maker aims to reduce its debts that ballooned following its acquisition of major Irish drug maker Shire PLC as it plans to concentrate its management resources on developing ethical drugs, the sources said.
Tokyo-based Takeda Consumer Healthcare, established in April 2016, posted sales of 64.1 billion yen and a net profit of 9.6 billion yen in the business year that ended in March 2019.
But profitability from OTC drugs is lower than that from prescription drugs, prompting the parent company to consider selling the subsidiary. Takeda Pharmaceutical is set to start work to choose a buyer of the unit.
[Copyright The Jiji Press, Ltd.]