TAIPEI, Taiwan--(BUSINESS WIRE)--Finance executives at respected Taiwanese wealth management company Crest View International has commented on Takeda Pharmaceutical Co. as they agree to sell their Japanese consumer health-care business for $2.3 billion (242 billion yen) to U.S. investment fund, Blackstone Group Inc.
"Takeda is a global manufacturer of over-the-counter (OTC) drugs and health products and according to our researchers, Blackstone is planning to take this business unit public in around five years," commented Michael Kennedy, Head of Corporate Trading at Crest View International.
Japan's largest pharmaceuticals company has been attempting to reduce its OTC assets worldwide as it aims to refocus its business and lower debt following its $59 billion acquisition of biopharmaceutical firm Shire.
According to analysts at Crest View International, the unit, which sold for a lower price than anticipated, likely due to Covid-19's impact on its finances, may benefit from the governments push to curb the costs of health-care, including prescription medicine.
Takeda said proceeds from the sale would boost its net profit by $992 million (105 billion yen). In addition, the Blackstone takeover could also help rejuvenate the selling of household brands such as Alinamin energy drinks and Benza Block cold medication.
"Blackstone is aiming to invest 50 billion yen into the OTC business. It has a three-year strategy to strengthen the business throughout Asia, with networks in China Taiwan and Thailand, and to launch new products based on its already-popular offerings," commented John Harrison, Head of Wealth Management at Crest View International.
Since Takeda acquired Shire, it has extended its therapy areas to include gastroenterology, oncology, neuroscience, rare diseases and plasma-derived therapies. Its asset sales centred on cutting business lines that are not aligning with these core target areas. In June, Takeda decided to sell a separate portfolio of over-the-counter medication to South Korea's Celltrion Inc. in a deal worth approximately $278 million, which is subject to certain post-sale conditions.
About Crest View International
Crest View International Limited is a private wealth management company headquartered in Taipei, Taiwan. Crest View International manages over $8.7 billion (USD) on behalf of its clients from around the world.