Takeda makes $280M divestiture amid Shire buy
- Following Takeda Pharmaceutical's acquisition of rare disease biotech Shire, the Japanese pharma is divesting its 51.34% majority share of the Chinese biopharma Guangdong Techpool Bio-Pharma to its joint venture partner, Shanghai Pharmaceutical Holding.
- The purchase by Shanghai Pharmaceutical is supported by a fund managed by SFund International Investment Fund Management, a wholly-owned subsidiary of Guangzhou Industrial Investment Fund Management.
- The agreement remains subject to approval from Chinese authorities, and the base payment for Takeda's holding is $280 million.
Takeda is deep into the process of buying up Shire, after the rare disease biotech finally accepted the Japanese company's fifth bid, worth $62 billion. After a long-running saga, this takeover will expand Takeda's portfolio and its global footprint — especially in the U.S. — and create one of the top 10 largest drug companies in the world by product sales.
This acquisition will be the largest in the company's history, and will require extensive borrowing. While the $280 million of the Guangdong Techpool Bio-Pharma deal is a drop in the bucket, it adds some cash to the pot, and maintains Takeda's focus on its global therapeutic areas of gastroenterology and oncology.
Sean Shan, president of Takeda China and area head of Takeda Greater China, in a statement said the company will continue its commitment to China, stating that the agreement will provide an "even greater focus to continue to meet the unmet needs of patients in China."
"The divestment to our current joint venture partners also ensures the uninterrupted supply of Techpool's portfolio of medicines to patients, who are our primary focus," said Shan.
The deal provides a change in direction for Shanghai Pharmaceutical Holding, helping it towards its goal of becoming a branded pharmaceutical manufacturer, and developing its own domestic marketing team.
"Shanghai Pharma will work closely with Techpool to break new ground and unleash the growth potential of its core products through targeted market access, marketing management systems, and a nationwide distribution network so as to create momentum to maintain sustainable growth," said Zhou Jun of Chairman of Shanghai Pharma.
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