Takeda Pharmaceutical and Teva Pharmaceutical Industries said yesterday they will launch a new business venture in or after April 2016 to market some of their treatments to healthcare providers and patients in Japan.
The venture will combine Teva's generic medicines with three Takeda products: BLOPRESS (excluding fixed dose combinations), a treatment for hypertension; TAKEPRON (excluding fixed dose combinations), a treatment for peptic ulcers; and BASEN, a treatment for type 2 diabetes.
The three Takeda products combined accounted for 7% of the company’s global revenue with ¥125 billion ($1.038 billion) in total sales during the 2014 fiscal year, which ended March 31 of this year.
The details disclosed yesterday flesh out a November 30 announcement of the new business. Takeda agreed to split off its “long listed” or off-patented and data exclusivity expired products business and transfer them to Taisho Pharm.
In return, Taisho agreed to give Takeda shares of Teva Pharma, which will become Taisho’s parent—and 51% owner of the venture under the entity Teva Takeda Pharma. The other 49% will be Takeda-owned through another entity, Teva Takeda Yakuhin.
Takeda estimated its revenue will decrease by ¥50 billion ($415.2 million) in the fiscal year that will begin April 1, 2016—but also projected that the venture will add to both its cash flow and earnings per share in FY2016, and over the long term. The company cited growth of the generic business and the addition of its own products and those of Teva to the business venture.
“Takeda’s leading brand reputation and strong distribution presence in Japan combined with Teva’s global expertise in supply chain, operational networks, commercial deployment, and R&D and scientific insight, brings forward a new, collaborative business model in line with government objectives that will ultimately serve millions of patients,” the companies stated.