The month of July witnessed the strategic move by Japanese company Takeda Pharmaceutical off-shelving generics and OTCs to Celltrion for USD 278 Million. Recently, Takeda and Teva’s joint venture was announced divesting most of its generics and operational assets to Nicho Iko Pharmaceuticals Co Ltd, a Japan-based generic pharma company specializing in cardiovascular and gastrointestinal drugs.
Although financial details of this transaction have not been revealed, the divesture can be seen as a means of organizing the companies’ portfolio and handling cash preservation. Under the partnership terms, both Takeda and Teva will offload numerous existing generics portfolio and focus on the commercialization of specialty generics and complex pipeline assets. While the business venture will utilize Teva’s marketing, commercialization and medical expertise, the branding, and distribution within Japan, which will be managed by Takeda. The 20 assets to be retained under the partnership will also include authorized generics, LLP, and specialty assets. As mentioned in the press release by Teva Pharmaceutical, this decision is based on the in-depth review of market opportunities and the sale of generics under this partnership, expected to close by early 2021.
In the recent past, Takeda has sold its non-core assets to Stada Arzneimittel AG and Orifarm GmBH, Germany-based pharmaceutical companies, and Acino Pharma, a Switzerland-originated pharmaceutical company. Apart from these, some of the assets were also sold to Hypera Pharma located in Sao Paulo.
While the pandemic brought on a lot of convergence amongst key market players in the pharma industry and leading companies to enter into several strategic collaborations in the niche and established segments, cash preservation with shelving off assets and closing facilities has been a downside. Streamlining product portfolios in the area of expertise and core therapeutics has been a strategy for growth and sustenance for several players who have ventured in collaboration or have sold out a few non-revenue generating segments.