Teva Pharmaceutical Industries has agreed to sell its stake of 51% in the Teva Takeda Pharma business in Japan, to JKI, a fund managed by J-Will Partners.
Teva Takeda Pharma, a joint venture (JV) formed in 2016 by Takeda and Teva, primarily focuses on generic and off-patent medicines.
Under the agreement, JKI will acquire all shares of Teva Takeda Pharma and its subsidiary, Teva Takeda Yakuhin.
Japan-based Takeda also agreed to transfer its 49% outstanding shares in Nagoya City-based Teva Takeda Pharma to Teva for supporting the divestment. Takeda anticipates receiving around JPY55bn ($370m) from the transfer proceeds and dividends, subject to any closing adjustments related to this transaction.
The divestiture includes Teva Takeda Pharma’s generics and legacy products.
Israel-based Teva announced plans to explore strategic options in Japan, including a potential divestment of its business venture with Takeda.
This move is part of Teva’s Pivot to Growth strategy, allowing the company to focus more on its new medicines in the Japanese market.
The decision also centred around Takeda’s growth strategies, as well as the changing pharmaceutical landscape in Japan.
Teva international markets commercial executive vice president Mark Sabag said: “This is another step in our Pivot to Growth strategy to focus the business.
“Furthermore, we are confident that this agreement with JKI will ensure the continued delivery of high-quality, affordable medicines to patients in Japan.”
After the share transfer is completed, Teva Takeda Pharma will no longer be affiliated with Takeda.
However, the Japanese drugmaker will continue to distribute medicines from Teva Takeda Pharma and its subsidiary, Takeda Teva Yakuhin, as per current responsibilities.
The Israeli pharmaceutical firm expects to complete the divestiture by 1 April 2025, pending regulatory approvals and other closing conditions.
Employees of the Teva Takeda Pharma business in Japan will retain their positions, according to the terms of the agreement.
Last month, Teva announced additional positive results from the Phase 3 SOLARIS trial of TEV-‘749 (olanzapine) in the treatment of schizophrenia. TEV-749 is an investigational once-monthly subcutaneous long-acting injectable (LAI) formulation of the second-generation antipsychotic, olanzapine.
