Takeda accelerates deleveraging via two divestitures

KUALA LUMPUR, May 9 (Bernama) -- Takeda Pharmaceutical Company Limited (Takeda) has entered into agreements to divest its Xiidra® (lifitegrast ophthalmic solution) 5% product (Xiidra®) to Novartis and its TachoSil® Fibrin Sealant Patch (TachoSil®) to Ethicon.

The two divestitures are part of Takeda’s strategy to focus on business core areas to its long-term growth and facilitate rapid deleveraging following its acquisition of Shire.

Takeda will receive US$3.4 billion upfront in cash and up to an additional US$1.9 billion in potential milestone payments from Novartis, and approximately US$400 million upfront in cash from Ethicon. (US$1=RM4.15)

It will use the proceeds to reduce its debt and accelerate deleveraging towards its target of 2.0x net debt/adjusted EBITDA in the medium term.

Takeda president and chief executive officer, Christophe Weber said: “We are working to strategically simplify and optimise our portfolio, while also rapidly deleveraging and continuing to invest in our growth drivers as a global, values-based, R&D-driven biopharmaceutical leader.”

Takeda will focus on its key business areas – gastroenterology, rare diseases, plasma-derived therapies, oncology and neuroscience.

This focus enables the pharmaceutical company to continue to deliver highly-innovative medicines and transformative care to patients worldwide, creating long-term value for its shareholders.

Both agreements are expected to close in the second half this year, subject to the satisfaction of customary closing conditions, receipt of required regulatory clearances and, where applicable, satisfaction of local works council requirements.

More details at https://www.takeda.com

-- BERNAMA