IMS Company Profiles - Report Buyer

IMS COM PANY PRO FILES TAKEDA
� Mergers & Acquisitions
• Year: 2008
Major Events
May: Takeda com pleted its Yen1 tril lion ($8.8 bil lion) ac qui si tion (through a cash trans ac tion of $25 per
share) of Mil len nium Pharmaceuticals, an nounced the pre vi ous month, with Mil len nium be com ing a
wholly-owned sub sid iary of Takeda but con tin u ing op er a tions as a stand alone busi ness in the US. Pres i -
dent Dr Deborah Dunsire will con tinue to lead the com pany and Takeda has ex pressed de sires to re tain
Mil len nium em ploy ees (around 1,000 em ploy ees). This is the larg est ac qui si tion ever made by Takeda
and more over, any Jap a nese phar ma ceu ti cal com pany, dem on strat ing Takeda’s com mit ment to be come
a true global phar ma ceu ti cal com pany with grow ing strength in on col ogy, in which Mil len nium has a
strong pres ence. With sales of $0.5 bil lion in 2007 and net prof its of $15 mil lion, Mil len nium co mes with a
pipe line con sist ing mainly of on col ogy and in flam ma tory drugs, in clud ing one for in flam ma tory bowel dis -
ease. Mil len nium’s main stay prod uct is an anticancer proteasome in hib i tor, Velcade (bortezomib), mar -
keted world wide and in Ja pan by Janssen (part of John son & John son). Velcade posted world wide sales of
Yen80 bil lion in 2007 and 2008 sales are ex pected to in crease to Yen32-34.5 bil lion in 2008 in the US
alone; cur rently used as sec ond and third line ther apy in mul ti ple myeloma, it is ex pected to be ap proved
for first line ther apy in the US in June 2008. Takeda hopes that this prod uct may even tu ally be come a
block buster with US sales of over Yen100 bil lion, bridg ing the loom ing gap from up com ing pat ent ex pi ries
of its main stay prod ucts with Prevacid (lansoprazole) set to go ge neric in the next few years and po ten -
tially switch to OTC in 2009 un der a li cens ing agree ment with Novartis, while pat ent pro tec tion ex pires for
Actos (pioglitazone) in 2011. An a lysts con sid ered the bid price for Mil len nium as sur pris ingly high, but
was likely to ward off competition from other potential counter bidders such as Johnson & Johnson,
thought to be a natural contended due to its co-promotion of Velcade.
March: Af ter over 30 years as part ners, Takeda and Abbott de cided to dis solve its TAP 50-50 jv with
Abbott in July, di vid ing it evenly be tween the two com pa nies and then merg ing it with Takeda to be come
a wholly owned sub sid iary of Takeda Amer ica Hold ings, Inc. The 50% stake in TAP is val ued at
Yen300-500 bil lion and over all the split seems to be am i ca ble and ben e fi cial to both com pa nies.. Abbott
will ob tain rights to Lupron De pot along with as sets pri mar ily re lated to this prod uct, and all em ploy ees as
well as pay ments based on TAP’s other cur rent and cer tain fu ture prod ucts. The new TAP sub sid iary of
TAH will re tain the other mar keted TAP prod uct, Prevacid (al though Abbott will re ceive around $1.5 bil lion
from prod uct sales over five years) in ad di tion to cer tain pipe line prod ucts: dexlansoprazole (TAK
390MR), a pro ton pump in hib i tor await ing ap proval; an other pro ton pump inhibior, ilaprazole (IY 81149)
and a drug for the treat ment of hyperuricemia in pa tients with gout (TMX 67). The two mar keted TAP
prod ucts, Lupron and Prevacid, re garded as global stra te gic prod ucts, posted world wide sales of Yen185
and Yen400 bil lion re spec tively in fis cal 2006. TAP con trib uted around one-third of Takeda’s to tal sales in
fis cal 2006 and the dis so lu tion and merger of TAP into Takeda will boost the over seas sales ra tio which
stood at around 50% in 2006. The trans ac tion is said to have no impact on fiscal 2007 results and
analysts viewed the move as positive for Takeda.
• Year: 2007
April: The buyout of Takeda’s in ter est in Wyeth KK (Jap a nese unit of Wyeth) was com pleted by Wyeth af -
ter four years. The com pa nies re ported that this will have no ef fect on their re la tion ship which re mains
strong with their cur rent co-pro mo tion of Enbrel.
© 2009 IMS Health In cor po rated or its af fil i ates Page 108