Takeda ‘to sell OTC business in Europe’ to fund Shire acquisition
Japan-based Takeda Pharmaceuticals is reportedly planning to sell its European over-the-counter business to lessen its debt from acquiring biotech company Shire.
Earlier this year, Takeda announced that it would acquire Shire for $62 billion. Shire had previously rejected four offers from the Japanese firm.
The US Federal Trade Commission gave the acquisition the green light in July.
However, in August, Christian Weber, president and CEO of Takeda, said that the offer is still subject to an approval process involving shareholders and regulators.
Since then, Shire has announced plans to buy Sanaplasma, a Switzerland-based plasma collection company.
On Monday, October 29, Bloomberg reported that Takeda is looking for ways to cut its debt after committing to buy Shire, citing people familiar with the matter.
The Japanese company is reportedly working with advisers at financial services firm JPMorgan Chase, and the sale of Takeda’s over-the-counter business in Europe could commence next year.
Takeda’s over-the-counter assets in Europe could be valued at around €1 billion ($1.1 billion), according to those familiar with the matter.
In September, Bloomberg similarly claimed that Takeda was considering selling Shire’s eye care business once the acquisition is completed, also in efforts to cut the debt raised to fund the $62 billion deal.
But last month’s report also said that Takeda “doesn’t have any current plan” to sell its over-the-counter business.
Takeda is also still trying to gain Europe’s approval of the Shire acquisition.
Last week, Bloomberg reported that Takeda was discussing the sale of an experimental inflammatory bowel disease drug, SHP647, with the European Commission, in efforts to close the deal.
Takeda claimed that the drug, which is in the final stages of experimental testing for Crohn’s disease and ulcerative colitis, is already marketed for those conditions. It generated $1.82 billion in fiscal year 2018.
Europe is the final major market that needs to sign off on the Takeda/Shire deal.
LSIPR has approached Takeda for confirmation of the reports.
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