Takeda Divests Four Diabetes Products In Japan To Teijin Pharma

Takeda Pharmaceutical Co Ltd (NYSE: TAK) will sell its four non-core type-2 diabetes products (Nesina, Liovel, Inisync, and Zafatek) in Japan to Teijin Pharma Limited, ¥133 billion (roughly $1.25 billion).
The portfolio generated total sales of approximately ¥30.8 billion (roughly $290 million) in FY2019.
Takeda will continue to manufacture and supply these products.
Takeda will use the proceeds to pay down debt and accelerate deleveraging towards its target of 2x net debt/adjusted EBITDA within FY2021 – FY2023.
Takeda said that the divestiture provides momentum toward optimizing its portfolio for growth primarily focused on gastroenterology, rare diseases, plasma-derived therapies, oncology, and neuroscience.
Takeda has announced 12 deals since January 2019, for a total aggregate value of up to approximately $12.9 billion.
Price Action: TAK at $16.75 closed 2.7% lower on Thursday.