Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and Japanese company Takeda Pharmaceutical Company Limited (TSE: 4502) have disclosed further details of their new business venture in Japan, initially reported a month ago.
"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 companies' announcement says.
The major long listed products of Takeda to be transferred to the new business venture in 2016 are Blopress, Takepron, and Basen. Total sales of the products to be transferred in 2016 were 125 billion yen in 2014, which was 7% of Takeda's global revenue.
As a result of the transaction, Takeda’s 2016 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.
Takeda expects that the transaction will be both EPS and cash flow accretive in 2016 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.
Teva says that the new business venture will be instantly accretive to its non-GAAP EPS in 2016 and beyond.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015