Weekly Asia Highlights- Japan and India
Takeda’s an Arrangement to Sell OTC Business to Blackstone for $2.3 billion
On August 19, 2020, as Kyodo News reported, Takeda Pharmaceutical Co. is in the final process to sell its over-the-counter drug business, Takeda Consumer Healthcare Co., to U.S. investment fund Blackstone Group. This ¥300 billion ($2.85 billion) deal is said to be settled down by the end of this month.
Takeda Consumer Healthcare was Takeda’s wholly-owned subsidiary known for Alinamin as vitamin dietary supplements and Benza as OTC. Last year’s revenue was ¥64.1 billion and operating profit was ¥12.9 billion.
Sources reported that the sale of non-core businesses aims to reduce the debt caused by the ¥6.2 trillion acquisition of Irish drugmaker Shire PLC in January last year and to focus on developing prescription drugs, especially cancer drugs that can generate higher profitability.
Reliance Buys Majority Stake in Netmeds Pharmacy for $83m
On August 19, 2020, Reliance Industries, the largest oil conglomerate company in India, acquired a majority stake in online pharmacy Netmeds for 6.2 billion rupees ($83 million). It is expected to boost the retail business and help RIL take on Amazon and others in the fast-expanding online drug market.
Netmeds sells both OTC drugs and over 70,000 prescription medications, and Reliance will gain approximately 60% stake in Netmeds through this deal.
Speaking on this strategic investment, Ms. Isha Ambani, Director, RRVL, said, “This investment is aligned with our commitment to provide digital access for everyone in India. The addition of Netmeds enhances Reliance Retail’s ability to provide outstanding quality and affordable healthcare products and services. It broadens its digital commerce proposition to include the most daily essential needs of consumers. We are impressed by Netmeds’ journey to build a nationwide digital franchise in such a short time and are confident of accelerating it with our investment and partnership.”
By Vicky Su
Editor: Sherry Hsiao
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