Takeda Announces Sale of OTC Drug Unit to Blackstone
Tokyo, Aug. 24 (Jiji Press)--Japan’s Takeda Pharmaceutical Co. <4502> said Monday it will sell a fully owned over-the-counter drug subsidiary to U.S. investment firm Blackstone Group for about 242 billion yen.
The sale of Tokyo-based Takeda Consumer Healthcare Co., whose main products include Alinamin series energy drinks, is intended to reduce the parent company’s interest-bearing debts, which ballooned with its acquisition of Irish drugmaker Shire PLC last year.
After the sale, Takeda Pharmaceutical will concentrate its management resources in its mainstay drugs for cancer and digestive system diseases. The exact value of the sale will be finalized later. Takeda Pharmaceutical is expected to profit by about 140 billion yen from the sale of shares in the subsidiary.
The sale will take place at the end of March next year. Sales of Alinamin and other brand products of Takeda Consumer Healthcare are expected to continue, while the company will be renamed without the word “Takeda.”
Takeda Pharmaceutical President Christophe Weber said in an online press conference that large-scale investment will be needed for the growth of the OTC unit, but he added that this has become difficult as the parent firm focuses on its own core businesses.
[Copyright The Jiji Press, Ltd.]