Takeda Pharmaceutical Company Limited has entered into agreements to divest its Xiidra(lifitegrast ophthalmic solution) 5% product toNovartis and its TachoSilFibrin Sealant Patch to Ethicon as part of its strategy to focus on business areas core to its long-term growthand facilitate rapid deleveraging following its acquisition of Shire.

 

"These initial divestitures represent important steps in advancing the growth strategy Takeda outlined following our transformational acquisition of Shire earlier this year,” said Christophe Weber, President and Chief Executive Officer of Takeda. “We are working to strategically simplify and optimize our portfolio, while also rapidly deleveraging and continuing to invest in our growth drivers as a global, values-based, R&D-driven biopharmaceutical leader.”

 

Takeda has said that the company will focus on its key business areas – Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies, Oncology and Neuroscience. This focus would enable Takeda to continue to deliver highly-innovative medicines and transformative care to patients around the world, creating long-term value for Takeda shareholders.

 

Takeda will receive $3.4 billion upfront in cash and up to an additional $1.9 billion in potential milestone payments from Novartis, and approximately $400 million upfront in cash from Ethicon. Takeda intends to use the proceeds from these divestitures to reduce its debt and accelerate deleveraging toward its target of 2.0x net debt/adjusted EBITDA in the medium term. Takeda is committed to rapid deleveraging driven by strong cash flow and divestiture proceeds, while also simplifying its portfolio.

Takeda has agreed to Sell Xiidra to Novartis for up to $5.3 billion and also divest TachoSil to Ethicon for approximately $400 million