Sector News

Brazil’s largest pharma leads race for Takeda’s $1B Latin American business: report

May 20, 2019
Life sciences

Binding offers could soon come in for Takeda’s Latin American business, which could fetch the company $1 billion to help pay off debt. And Brazil’s largest drugmaker is reportedly in the lead.

EMS Pharma is now the front-runner to make a formal proposal by the end of May, Reuters reported, citing three sources with knowledge of the process.

Blackstone-backed Brazilian investment shop Patria Investments could also come up with an offer, while other previously rumored potential bidders such as private equity firms and frequent pharma buyers Advent and CVC Capital Partners may not be interested in the unit after their analyses, the sources told the news service.

A fourth source told Reuters that EMS is very interested in the franchise. It’s not a total surprise, given that its sister company Novamed last year picked up Takeda’s Brazil-based, wholly owned unit Multilab for 500 million Brazilian real ($130 million). Both EMS and Novamed belong to Brazilian holding company NC Group under its pharmaceutical umbrella.

In the 2018 fiscal year that ended in March, Takeda recorded sales in Latin America of 88.1 billion Japanese yen ($800 million), up from 75.7 billion yen in the previous fiscal cycle. But make no mistake—the jump can largely be attributed to the addition of three months’ worth of Shire revenue, as Takeda wrapped the Shire megamerger in January. If looking only at the pre-Shire nine months, the business’ revenue dropped by 2.8% year over year.

Latin America constitutes about 4% of Takeda’s total revenue, and the unit sells prescription drugs in oncology and gastroenterology as well as vaccines and some over-the-counter products.

During Takeda’s full-year earnings call this month, CEO Christophe Weber restated that his company is looking to jettison $10 billion worth of assets to help bring down its debt level to 2.0x adjusted EBITDA in three to five years.

Toward that goal, it has agreed to sell its Xiidra eye drops to Novartis for up to $5.3 billion and its TachoSil surgical patch to Johnson & Johnson for about $400 million. Other selloffs will come from “hundreds of products” outside of its core areas of gastrointestinal, rare diseases, plasma therapies, oncology and neuroscience, Weber said.

By Angus Liu

Source: Fierce Pharma

comments closed

Related News

January 22, 2023

Sun Pharma to buy Concert Pharmaceuticals for $576m

Life sciences

Sun Pharmaceutical Industries has signed a definitive agreement to buy all outstanding shares of Concert Pharmaceuticals in a deal valued at $576m. Under the deal, the company will buy all shares of Concert common stock through a tender offer for $8.00 per share in cash upfront payment.

January 22, 2023

Novo Nordisk diabetes pill wins FDA approval for first-line use

Life sciences

The Food and Drug Administration on Thursday approved Novo Nordisk’s diabetes pill Rybelsus as an initial treatment to lower blood sugar levels, a label expansion that will allow it to compete more directly with other oral drugs from Merck & Co. and Eli Lilly.

January 22, 2023

Bayer feeling more heat from activist investors, this time from Bluebell

Life sciences

Since making an ill-advised $63 billion buy of Monsanto in 2018, Bayer has faced heaps of pressure from investors that have called for the company to oust its leadership and to restructure. Now comes new pressure from a familiar source. Bluebell Capital Partners has bought an undisclosed stake in the company and is agitating for a breakup, sources told Reuters.

How can we help you?

We're easy to reach