OSAKA, Japan & JERUSALEM--(BUSINESS WIRE)--Insert after fifth paragraph, first sentence of release: The new business venture will be instantly accretive to Teva's non GAAP EPS in 2016 and beyond.
The corrected release reads:
TAKEDA PROVIDES FURTHER INFORMATION ABOUT ITS NEW BUSINESS VENTURE WITH TEVA
Takeda Pharmaceutical Company Limited (TOKYO: 4502) and Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) (TASE: TEVA) today made the below follow-up announcement regarding the overview of their new business venture in Japan, which was initially disclosed on November 30, 2015 in the press release titled, "Teva and Takeda establish unique partnership to meet the wide-ranging needs of patients and growing importance of generic medicines use in Japan". [http://www.takeda.com/news/2015/20151130_7215.html]
- The new business venture, to be established in or after April 2016, will deliver Teva's high-quality generic medicines and some of Takeda's long listed products to patients and healthcare professionals in Japan, leveraging Takeda's corporate brand and unique distribution network in Japan and Teva's wide product portfolio and cutting-edge business efficiency.
- The major long listed products of Takeda to be transferred to the new business venture in FY2016 are BLOPRESS, TAKEPRON and BASEN. Total sales of the products to be transferred in FY2016 were 125 billion yen in FY2014, which was 7% of Takeda's global revenue. As a result of the transaction, Takeda’s FY2016 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. The details of establishing these companies by an absorption-type company split are outlined in a separate release issued by Takeda to file to the Tokyo Stock Exchange: "Takeda Announces Details of New Business Venture with Teva in Japan - Splitting off (absorption-type split) of Takeda's Long Listed Products Business and its Subsequent Succession by Teva" (herein called "Takeda's TSE Filing"). [http://www.takeda.com/news/2015/20151228_7258.html]
- Takeda anticipates that the transaction will be both EPS and cash flow accretive in FY2016 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. The new business venture will be instantly accretive to Teva's non GAAP EPS in 2016 and beyond. Some additional details about the financial impact of the transaction are outlined in Takeda's TSE Filing, and all will be incorporated into Takeda's FY2016 forecast which will be communicated in May 2016.