Sector News

Takeda’s emerging markets cull reaches Russia with $660M Stada selloff

November 6, 2019
Life sciences

Get involved in the discussion! Click here to comment on this story

After Stada CEO Peter Goldschmidt brushed off the possibility of a deal for some Takeda drugs in western Europe, the German generics player has laid hands on a different Takeda portfolio—and it’s the largest acquisition in the company’s history.

Takeda agreed to sell some over-the-counter and prescription drugs in Russia, Georgia and several other Commonwealth countries to Stada for $660 million, the Japanese pharma said Tuesday.

The ax is falling on about 20 assets in the region, including OTC vitamins and food supplements as well as drugs in cardiovascular, diabetes, general medicine and respiratory therapeutic areas.

Blood clot buster Cardiomagnyl (magnesium hydroxide), which Takeda acquired in its 2011 Nycomed buyout, is cited as a key growth driver within the portfolio. Patent-protected diabetes treatment Nesina and blood pressure therapy Edarbi are also included.

About 500 current Takeda employees in sales and marketing could jump to the German drugmaker when the transaction closes, which is expected in the quarter ending March 31. The Japanese pharma will continue to manufacture and supply the products to Stada.

Combine this Stada pact with Takeda’s recent deal to hive off some 30 drugs in the Middle East and Africa to Switzerland’s Acino International, and the emerging markets products Takeda is selling generated $300 million in revenues in its previous fiscal year, the company said.

“Takeda remains committed to the emerging markets, Russia and the countries included in this agreement,” Takeda’s president of the Growth & Emerging Markets Business Unit, Ricardo Marek, said in a statement. “We are confident that Stada is well placed to provide patients with uninterrupted access to the divested products—a top priority for Takeda.”

Takeda is moving one step closer to its target of cutting loose about $10 billion worth of drugs outside of its five key business areas—gastroenterology, rare diseases, plasma-derived therapies, oncology and neuroscience—to help pay down the debt incurred in its $59 billion takeover of Shire.

Other than the two emerging markets deals with Acino and Stada, it has transferred Shire’s eye drug Xiidra to Novartis for up to $5.3 billion and penned a deal with Johnson & Johnson’s Ethicon over its TachoSil patch for $400 million.

For Stada, the deal marks the largest acquisition in the German company’s history, according to Goldschmidt. It enriches the German company’s existing offerings in Russia and the Commonwealth region and further expands its consumer health business.

“Stada’s branded products are already well-represented in the most popular pharmacy categories in our key markets,” he said in a statement. “However, we are continuing to expand our portfolio of branded generics, to strengthen our position in strategic niches and to develop new market segments.”

Stada has been on an acquisition spree lately. Monday, the company said it would acquire Czech Republic-headquartered Walmark for an undisclosed amount, nabbing a “market-leading” consumer health portfolio in central Europe, along with more than 540 employees and a manufacturing facility in Trinec, Czech Republic.

The company also recently took in six OTC brands—including five skincare products and a pediatric cough remedy—from GlaxoSmithKline, which is itself looking to exit the consumer health business.

By Angus Liu

Source: Fierce Pharma

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

November 15, 2019

Merck builds in CNS diseases with $576m Calporta buy

Life sciences

LinkedIn Twitter FacebookMerck & Co has had mixed fortunes in neurological diseases of late, but remains committed to the category and has just bolstered its early-stage pipeline with a $576 […]

November 14, 2019

Longtime Abbott chief Miles White, designer of AbbVie spinoff, bows out of CEO job

Life sciences

LinkedIn Twitter FacebookAbbott Laboratories chief Miles White will shed the CEO title next year after a 21-year run and several major transformations at the global healthcare company. White will officially […]

November 14, 2019

Thermo Fisher looks to buy fellow diagnostics maker Qiagen: Bloomberg

Life sciences

LinkedIn Twitter FacebookThermo Fisher Scientific has begun early talks to take over Dutch diagnostics maker Qiagen, which has the potential to become one of its largest acquisitions, according to a […]

Subscribe to our Weekly Newsletter

We're easy to reach