Blackstone acquires Takeda’s Japan Consumer Healthcare Business Unit

August 25, 20200

The pandemic has shown significant developments in the biopharmaceutical industry. While some large players are entering into partnerships to strengthen and broaden their offerings, others have divested a part of their portfolio to focus only on core areas of interest. In this context, Takeda Pharmaceutical has made bold moves to streamline its product portfolio. Last month, Takeda Pharmaceutical offloaded its generics and OTCs to Celltrion for USD 278 Million. Recently, Takeda announced divestment of its generics and operational assets to Nicho Iko Pharmaceuticals Co Ltd.   

Takeda has now entered into a definitive agreement with Oscar A-Co KK, a company managed by funds from Blackstone Group Inc, to divest its’s wholly-owned Japanese subsidiary of Consumer Healthcare’s (TCHC) Business Unit. Under the terms of the agreement, Blackstone Group Inc. will pay Takeda a total of USD 2.27 Billion. As mentioned in the press release by Takeda, this divested portfolio includes numerous OTCs and health products that generated total revenue of about USD 563 Million in the fiscal year 2019. Some of the larger revenue-generating assets in this portfolio include Alinamin, Japan’s first Vitamin B1 preparation, and Benza Block, an anti-inflammatory indicated for cold and myalgia. This transaction is anticipated to be closed by 31st March 2021.   

While Takeda has strategically thought about the move, to focus on their key business areas comprising of Gastroenterology, Rare Diseases, Plasma Derived Therapies, Oncology and Neuroscience, this investment by Blackstone, one of the world’s leading investment firms, indicates its interest to leverage the brand and accelerate growth through investments in the pharma and MedTech industries. In the recent past, Blackstone has also funded USD 2 Billion to Alnylam Pharmaceuticals for developing RNA interference (RNAi) based medicines and Medtronic’s Diabetes Program with USD 337 Million. In the field of Private Equity based transactions, this deal marks the second activity by Blackstone following the acquisition of Ayumi Pharmaceutical Corporation, a specialty pharma company of Japan, in 2019.   

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