Blackstone buys Takeda consumer health care business for $2.3bn

Blackstone’s Life Sciences group just added another sizable piece to its growing portfolio with the purchase of Japanese company Takeda Consumer Healthcare (TCHC) for $2.3 billion from its parent company. The deal is being done via Oscar A-Co KK, a company that is controlled by Blackstone, which has rapidly grown its life sciences unit with a $4.6 billion asset raise for Blackstone Life Sciences V that was not only oversubscribed -- it was also the largest life sciences private fund to be raised to date, according to Blackstone officials. This month, Blackstone and Alnylam Pharmaceuticals closed the R&D funding component of the companies’ previously announced $2 billion strategic financing collaboration to accelerate therapeutics for cardiovascular disease. The Takeda transaction is expected to close at the end of March 2021 and the business is expected to continue serving consumers in Japan and Asia. The divested portfolio includes a variety of over-the-counter medicines and health products such as Alinamin, Japan’s first vitamin B1 preparation, and Benza, which is a cold remedy. Blackstone intends to develop the $570 million business with its current management and will continue to employ its staff. According to analysts at Crest View International, the unit, which sold for a lower price than anticipated, likely due to Covid-19's impact on its finances, may benefit from the governments push to curb the costs of health-care, including prescription medicine. akeda said proceeds from the sale would boost its net profit by $992 million (105 billion yen). In addition, the Blackstone takeover could also help rejuvenate the selling of household brands such as Alinamin energy drinks and Benza Block cold medication. "Blackstone is aiming to invest 50 billion yen into the OTC business. It has a three-year strategy to strengthen the business throughout Asia, with networks in China Taiwan and Thailand, and to launch new products based on its already-popular offerings," commented John Harrison, head of wealth management at Taipei-based Crest View International. Takeda, which started the healthcare unit as a separate business in April 2017 to further develop the consumer health care business in Japan and lower debt after its $59 billion acquisition of Shire, is now focused on innovative medicines across its five key business areas and working to address significant unmet patient needs in these fields. Under Blackstone’s ownership, Takeda Consumer Healthcare will benefit from increased strategic focus, resources and agility to support the growth and development of its important brands and to rapidly respond to evolving market conditions and diverse customer needs, officials said.

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