The FINANCIAL — Takeda Pharmaceutical Company Limited (“Takeda”) and NEUTEC İLAÇ SANAYİ VE TİCARET A.Ş (“Neutec”) on February 24 announced that Takeda’s wholly-owned subsidiary, Takeda GmbH, and Neutec have signed an agreement to obtain a select portfolio from Neutec, composed of 13 products in the gastroenterology, respiratory, metabolic and musculoskeletal therapeutic areas, through the acquisition of NEUTEC TOPLAM KALİTE YÖNETİMİ SANAYİ TİCARET ANONİM ŞİRKETİ (“Toplam Kalite”), a group company of Neutec in Turkey.
The transaction is expected to be finalized during the first quarter of Fiscal Year 2015, according to Takeda.
Closing of the acquisition is subject to the satisfaction of certain conditions precedent. Upon Closing, Takeda would acquire the select Neutec portfolio in cash for up to Turkish Lira (TRL) 300 million including milestone payments. Under the agreement, the products will continue to be manufactured locally by Neutec. This acquisition is expected to support Takeda’s growth strategy and enhance its position in Turkey, adding complementary products to its existing gastroenterology, respiratory, metabolic and musculoskeletal portfolio to better cater to the medical needs of patients in Turkey, particularly in acute and chronic diseases.
This transaction will also increase Takeda’s investment in Turkey, where the company has been operating for the last five years, offering a portfolio of prescription drugs with well-known brands such as Pantpas (gastroenterology), Actos (diabetes) and Alvesco (respiratory) and Xefo® Rapid (musculoskeletal). Takeda İlaç Sağlık Sanayi Ticaret Limited Şirketi (“Takeda Turkey”) has over 130 employees within its two offices in this country. In order to enhance Takeda’s presence in Turkey, this acquisition is expected to generate an estimated 100 new jobs in Turkey, offering career and growth opportunities for best-in class talents.
“This agreement demonstrates Takeda’s continued commitment to patients in Turkey, a key country within the region and the largest pharmaceutical market in Eastern Europe and the Middle East, which is forecasted to grow at around 6% annually over the next five years,” said Danilo Cassani, Takeda’s Area Head for Near East, Middle East and Africa.
“This portfolio enables Takeda to expand its offering of quality medications, applying its global capabilities and local expertise to meet the diverse needs of patients and healthcare providers in Turkey,” added Renata Campos, Takeda Turkey’s Managing Director.
Neutec is a leading pharmaceutical group in Turkey with a diverse portfolio and strong in-house R&D capabilities focused on differentiated and value added branded generics, which have been responsible for the company’s solid performance and sustained growth in recent years.
“We are proud of this transaction with a best in-class global company such as Takeda,” said Mahmut Bilgiç, CEO of Neutec. “This is one of our largest deals in Turkey with a multinational pharmaceutical company and will allow us to reinforce our market position in core products and help enhance our R&D activities to reach and serve the needs of more patients.”
Takeda does not expect to revise earnings guidance for its 2014 fiscal year in connection with this acquisition, which may be contingent upon local legislation frameworks.
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