Looking to trade in some assets outside Japan to fund its $58 billion takeover of Shire, Takeda is reportedly eyeing a sale of some emerging-market drugs it gained in another acquisition eight years ago.
The Japanese pharma is weighing the sale of some emerging markets products that could fetch about $3 billion, Bloomberg reported, citing people familiar with the matter. The talks are too early to draw any conclusion on the fate of specific drugs, the report said.
Takeda acquired these drugs—prescription and over-the-counter included—in its $14 billion buyout of Swiss drugmaker Nycomed in 2011. But lately, emerging markets haven’t been doing the company much good.
For the two quarters ended Sept. 30, Takeda grew sales in emerging markets by only 2.4%. That’s the lowest growth rate among all of Takeda’s geographic regions, excluding currency fluctuations and one-time changes. Taking those into account, the portfolio declined 6.6% to 126.7 billion Japanese yen ($1.16 billion). In fact, without the double-digit growth posted in China, its emerging markets decline would be even worse.
And Takeda is scouting around for assets to sell. With the Shire deal, Takeda landed a spot among the world’s 10 largest biopharma firms, but at the same time took on an additional $31 billion in debt—one of the risks cited by some buyout opponents.
To help fill that debt hole, CEO Christophe Weber has laid out plans to cut jobs in a bid to save $1.4 billion per year, and he’s also looking to unload $10 billion in assets.
So far, some Shire drugs potentially worth $4 billion to $5 billion, including dry eye therapy Xiidra, have reportedly made its for-sale list. The company has also promised to sell inflammatory bowel disease candidate SHP647 to allay EU antitrust concerns about an overlap with Takeda’s own bowel drug Entyvio. While its European OTC business could also be jettisoned, during an investor briefing in January, Weber affirmed his commitment to Takeda’s Japan-based OTC business.
In addition to those products, Takeda has unveiled a plan to shutter its Chicago-area U.S. headquarters and relocate its U.S. operations closer to Shire’s in the Boston region. And after a move to its new global headquarters in Tokyo, it’s aiming to collect around $540 million by selling its legacy Osaka estate. Meanwhile, it has returned its majority stake in a Chinese joint venture to partner Shanghai Pharma for $280 million.
By Angus Liu
Source: Fierce Pharma
A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.
Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.
Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”