Japanese pharmaceutical company Takeda, which closed its acquisition of Britain's Shire for $ 62 billion last year, is seeking a buyer for its OTC (non-prescription) drug business in Latin America. According to sources, the goal is to raise $ 1 billion with the transaction. The Brazilian EMS, of the NC group, is seen as a strong candidate to take the assets.

With a product portfolio comprising mature and consolidated brands in its segments in Brazil, the business was offered to different Brazilian pharmaceutical companies, among them Eurofarma, Biolab and EMS, Value was calculated.

Biolab and Eurofarma, which would have interest only in OTC operations outside Brazil, would have declined to present a proposal at this time. EMS, the largest pharmaceutical company in the country, is evaluating the opportunity as it plans to invest to expand and consolidate its presence in the market of prescription drugs inside and outside Brazil.

According to this source, the group would be interested in both Brazilian and international operations and the internal understanding would be that Takeda's OTC portfolio is strong and robust. In Mexico, for example, prescription drugs would account for a significant share of the lab's business of about 30 percent.

Takeda said it did not comment on market speculation and reiterated "its commitment to remain a company focused on launching innovative research and development products, pursuing its goal of providing better health and a brighter future to is at the center of everything he does: the patient. " EMS said it did not comment on market rumors and Biolab declined to comment. Eurofarma replied that it "does not confirm or comment on any ongoing negotiations".

Last year, Takeda had already sold its generic business in the country, the Multilab laboratory, to Novamed, also of the NC group. Globally, the strategy of the Japanese pharmaceutical company is to focus mainly on gastroenterology and oncology with biological drugs of high complexity, in addition to rare diseases, neurological and hematology. The idea is to replicate this structure in Brazil.

Earlier this year, Takeda chief executive Christophe Weber said Nycomed - acquired in 2011 and the original owner of the lab's OTC portfolio - was among the assets considered non-strategic, prompting the Financial Times newspaper, to write that the drugmaker could consider selling the deal as part of a $ 10 billion divestment program aimed at reducing borrowing after the Shire purchase. Foreign market analysts had already indicated that the OTC area and certain brands of prescription drugs would not be in the business focus.

In Brazil, with the completion of the Shire purchase in January, Takeda doubled in size and the OTC area accounted for 14% of sales revenue - the largest contribution comes from prescription drugs, with 36% followed by hematology with 29%. The country is part of the emerging group, along with China and Russia, which accounts for 14 percent of the pharmaceutical company's $ 31 billion global revenue.

Despite the intention to sell assets to reduce debt, the reorganization of Takeda's portfolio from a strategic point of view is in line with the movement of other multinationals in the sector. Gradually, large global pharmacists have abandoned traditional markets and invested billions of dollars to develop innovative and biotech drugs, or buy companies that already have developed highly innovative therapies.

SOURCE: https://panoramafarmaceutico.com.br/2019/04/04/takeda-coloca-a-venda-divisao-de-mips-na-america-latina/