Takeda Pharmaceutical Company has completed the previously announced sale of a portfolio of select over-the-counter (OTC) pharma products and non-core assets to Orifarm Group for $670m.
The latest move follows an agreement signed by the companies in April last year to divest the products.
Under the terms of the deal, Orifarm acquired nearly 130 OTC and prescription pharmaceutical products of Takeda Pharmaceutical sold in Europe, as well as two manufacturing sites in Denmark and Poland.
The portfolio sold to Orifarm also includes a variety of OTC products and food supplements as well as select prescription products in Cardiovascular, Anti-inflammatory, Respiratory, and Endocrinology therapeutic areas.
These products are sold predominantly in Denmark, Norway, Belgium, Poland, Finland, Sweden, the Baltics and Austria.
Additionally, the companies have signed manufacturing and supply agreements, where Takeda will continue to manufacture select products on behalf of Orifarm.
As part of the transaction, nearly 600 employees working in these manufacturing sites, sales and marketing professionals supporting the sold portfolio and manufacturing facilities were also transitioned to Orifarm.
Takeda Pharmaceutical is planning to use these sale proceeds to reduce its debt and accelerate deleveraging towards its target of 2x net debt/adjusted EBITDA within 2021–2023.
Furthermore, it also intends to focus on optimising its business around its key areas and simplify the operations to better serve patients by providing innovative treatments in these areas.
Recently, the company has also concluded the sale of four diabetes products, Nesina, Liovel, Inisync and Zafatek, which are sold in Japan to Teijin Pharma for $1.2bn (JPY133bn).
The companies have also signed a manufacturing and supply agreement and distribution agreement, where Takeda will continue to manufacture, supply and provide the distribution channel to Teijin Pharma.