Monday, December 28, 2015
Teva Pharmaceutical Industries Ltd. (TEVA) and Takeda Pharmaceutical Company Limited made follow-up announcement regarding the overview of their new business venture in Japan which was initially disclosed on November 30, 2015.
The new business venture, to be established in or after April 2016, will deliver Teva's generic medicines and some of Takeda's long listed products to patients and healthcare professionals in Japan.
The major long listed products of Takeda to be transferred to the new business venture in fiscal year 2016 are BLOPRESS, TAKEPRON and BASEN. Total sales of the products to be transferred in fiscal 2016 were 125 billion yen in fiscal year 2014, which was 7% of Takeda's global revenue.
As a result of the transaction, Takeda's fiscal year 2016 revenue is estimated to decrease by approximately 50 billion yen, based upon current assumptions. LEUPLIN remains at Takeda, as a product of Takeda Oncology.
The new business venture, to be owned 51% by Teva and 49% by Takeda, will consist of Teva Takeda Pharma and Teva Takeda Yakuhin.
Takeda will split off its off-patented and data exclusivity expired products business or "long listed products business" via an absorption-type split, and subsequently the business will be succeeded by the Japanese subsidiaries of Teva Pharmaceutical Industries Ltd. of Israel.
This is a triangular absorption-type company split among Teva Pharma Japan Inc and Taisho Pharm. Ind., Ltd. , as well as Takeda. In this absorption-type company split, Takeda will be the splitting company and Taisho Pharm will be the succeeding company. Takeda's long listed products business will be transferred to Taisho Pharm, and Taisho Pharm will allocate shares of Teva Pharma, which will become its parent company, to Takeda as consideration for the company split. The company name of Taisho Pharm, which will succeed Takeda's long listed products business and also continue its generics business, will become Teva Takeda Yakuhin Ltd. , and the company name of Teva Pharma, which will continue its generics business, will become Teva Takeda Pharma Ltd. Both companies will jointly engage in the new business.
Takeda anticipates that the transaction will be both earnings per share and cash flow accretive in fiscal year 2016 and over the long-term, due to growth of the generic business and the addition of products from Takeda and Teva to the new business venture.
rttnews.com
