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    Home > Medical News > Latest Medical News > Cut the price of 10 billion to buy a department, who made it?

    Cut the price of 10 billion to buy a department, who made it?

    • Last Update: 2020-09-26
    • Source: Internet
    • Author: User
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    Guide: Takeda Pharmaceuticals cuts meat, Blackstone Group soul cut prices.
    " Blackstone picked up a big bargain.
    ", which should be the most talked about topic in investment banking circles in recent days.
    things to start with three days ago.
    On the evening of August 24th Takeda, Japan's biggest drugmaker, formally announced that it had agreed to sell its over-the-counter drug unit to Blackstone, the private equity giant, for Y250bn ($2.4bn/Rmb16.6bn), a deal expected to be completed by the end of March next year.
    It's worth noting that the final price is 150 billion yen ($9.7 billion) less than Takeda's initial offer of 400 billion yen, and the notation that Blackstone is slashing the price by 10 billion yuan has spread.
    time pulled back in June this year, when "Takeda Pharmaceuticals on its consumer drug business to find a buyer" rumors began to circulate, Blackstone, Bain Capital and Dazheng Pharmaceuticals three well-known institutions have set their sights on this target, the fierce competition is not difficult to imagine.
    , Blackstone not only won the bid, but also got an enviable ultra-low price.
    , blackstone is "picked up cheap", but Takeda Pharmaceuticals may not necessarily lose money.
    1, Takeda Pharmaceuticals: "Repayment of debt" and "slimming down", the first thing that comes to mind is the famous acquisition of Shire for $62.2bn early last year.
    , shortly before the deal was called, Christopher Weber, Chief Executive Officer of Takeda Pharmaceuticals, said it was "unlikely that the over-the-counter drug business will be transferred in the future."
    " just no one thought that the turn came so fast.
    just over a year ago, Takeda has targeted another option: a sell-off.
    is also worth mentioning that Takeda Pharmaceuticals has been cutting off its star business.
    According to publicly available information, the transaction is targeting Takeda Consumer Health, a subsidiary of Takeda Pharmaceuticals, whose main products are Alinamin (series of vitamin compounds and nutritional drinks) and Benza (series of cold medicines and cough medicines) for more than 60 years, and has a very high national profile in Japan, which can be said to be an important boost in the history of Takeda Pharmaceuticals.
    In addition, according to financial data, Takeda Pharmaceuticals' subsidiary had sales of 64.1 billion yen ($607 million) in fiscal 2018 and a net profit of 9.6 billion yen ($0.91 million), a net profit margin of 15 percent, compared with a net profit margin of 5.2 percent for the same year.
    so the problem, a well-paid star business, why sell? The most immediate reason is to say back to the "snake swallowing elephant" huge acquisition.
    January 8, 2019, the eight-month, five-round deal ended in a $62.2 billion deal.
    to pocket Shire's earnings, Takeda's market capitalisation soared and it succeeded in becoming the only Asian drugmaker to make the list, along with TOP10, the world's most valuable pharmaceutical company by market capitalisation.
    , on the other hand, Takeda is also sadding it with huge debts of more than $30bn.
    to ease the debt burden, Takeda announced a $10bn non-core divestiture at the same time as the acquisition was completed, with the sale of 21 non-core assets, including its old headquarters.
    also means that the over-the-counter drug business is not the only asset that Takeda has sold off.
    In fact, Takeda has been in a selling position since the divestiture program, and some of the important deals are as follows: According to statistics, Takeda has completed more than $7 billion in divestitures in the past year.
    fact, if you look further, Takeda Pharmaceuticals "strongman broken wrist"-like series of actions behind, is far from "debt repayment" so simple.
    first look at a set of data: in the decade 2020-2030, Takeda's patents will expire in more than a dozen drugs, of which 100 per cent will earn more than 30 billion yen a year and more than 45 percent will earn more than 50 billion yen.
    this means that, in addition to the debt, Takeda's deeper reason for divesting non-core assets is that it does not escape the risk of bulk patent maturities commonly faced by large pharmaceutical companies.
    s return to the $2.4 billion sale of its over-the-counter drug division, summed it up in the words of Jay Lee, an analyst at Morningstar, "which has little overlap with Takeda's core business, and its divestiture will not only help it meet its debt repayment targets, but will also allow it to focus on its core business areas."
    "s core business area here is Takeda Pharmaceuticals' top five areas of cancer, rare diseases, neuroscience, digestion and blood products, with 2019 sales accounting for 79% of Takeda Pharmaceuticals' total sales.
    so the sell-off is not only necessary for Takeda to "slim down", but also means that its $10bn non-core divestiture programme is drawing to a close.
    2, Blackstone: Savage growth, four months more than 10 billion U.S. dollars to sweep the medical field to say why Takeda Pharmaceuticals "sold", and then see why Blackstone "buy"? Blackstone must not have said much.
    Blackstone, the world's largest private equity fund, was founded in 1985 and now has $550 billion in assets under management.
    July, Blackstone announced that its Blackstone LifeSciences V fund had been oversubscribed and eventually raised up to the expected maximum amount of money raised, making it the largest biopharmaceutical fund in history.
    ammunition, Blackstone's sweep in the medical and health sector is also believed to be officially launched.
    but Takeda Pharmaceuticals over-the-counter drugs such a little cutting-edge technology, pharmaceutical research and development properties are not strong in favor of health care products business, Blackstone what does Blackstone really look at him? "Takeda Consumer Health is well positioned to develop its established brand in Japan and launch a new and expanded product range.
    we believe it has great potential in Japan and throughout Asia, and we believe Blackstone's global network and expertise can accelerate its growth.
    ," Yoshihiko Sakamoto, head of private equity in Japan at Blackstone, said in a statement.
    In contrast to this official response, many in the industry have given a more detailed reason to explain what kind of cheap Blackstone "picked up": first, as Blackstone statement said, Takeda star products Alimina and Benza in the Japanese market's high reputation, with the help of these two national brands to expand new products, indeed has a certain innary advantage;
    In China, for example, according to JD Mall data, Q1 2020 nutrition and health care products sales growth is very obvious, such as FANCLHealthScience year-on-year growth of up to 25 times and so on;
    fact, this is Blackstone's second big deal in the medical field in just 20 days.
    on August 5th Blackstone announced a $4.7bn ($32.6bn) takeover of Genealogy website Ancestry.com, making it the largest single acquisition in its history.
    earlier, on April 13, Blackstone also announced a broad strategic partnership with RNAi Therapeutics' Alnylam, in which Blackstone invested up to $2 billion in a strategic investment that set a record for the highest investment in biopharmaceuticals.
    the $2.4 billion acquisition of Takeda's consumer health division and other big and small acquisitions, Blackstone has been frantically sweeping the healthcare sector for $10 billion in just four months.
    But it's hard to imagine Blackstone's biopharmaceutical layout being virtually blank until 2018, when it acquired Claris, a life sciences investment firm, and formed Blackstone Life Sciences Group on the basis of which it formally entered the medical investment space.
    to the present day, Blackstone in the field of biomedicine mainly follow three strategies: 1, with well-known pharmaceutical companies strategic cooperation.
    announced on June 13, 2020 that it would invest $337 million in jointly developing next-generation diabetes management products with Medtron;
    announced on June 11, 2020 that it would invest $350 million in the sale of the kidney drug bardoxolone;
    as in February 2019 to invest $250 million in Anthos Therapeutics, which develops drugs to treat blood clots.
    " Blackstone basically has all areas, types of products and investment vehicles, Blackstone's size and diversity bring a voice, we can do other companies can not do.
    " Su Shimin once said.
    now, less than two years into the medical field, Blackstone has done "what no other company can do."
    a medical empire belonging to Blackstone is slowly emerging, under the "barbaric growth" of the Blackstone empire.
    blackstone cut the price of $10 billion to buy a business unit of Takeda Pharmaceuticals, who made it? "The answer here is clear: it's a no-lose deal.
    , which has divested its non-core assets and taken out "debt repayment" funds, has "picked up a bargain" at Blackstone's low price, and its presence in the medical sector has gone further, resulting in a win-win outcome.
    To say the revelation, then for companies, Takeda Pharmaceuticals' strategy of divesting non-core assets and focusing on its core business in a challenging industry is an example worth thinking about and learning from, as some say, "sometimes abandoning is to be light-hearted".
    for investment banks, Blackstone Su Shimin in the first half of this year has been concisely expressed advice: to have enough money, look at the world, first steady, and then observe the opportunity.
    finally take this opportunity to talk about the healthcare mergers and acquisitions market from 2020.
    , the average size of completed mergers and acquisitions in the healthcare sector in the first half of 2020 is lower than at any time in the past decade, according to Evaluate Vantage, a health-care analyst.
    specifically, the average healthcare sector acquisition in the first half of 2020 was just $108 million, the first overall decline since 2015;
    sure, in this year's special outbreak context, the medical sector is between a difficult time to repeat the $60 billion, $70 billion deal.
    But it was also in this magical year that the merger circle staged a magical scene: qiAGEN, a former diagnostic testing manufacturer, asked for a "high price", which led to the sale of Thermo's $11.5 billion acquisition;
    but anyway, the first half is over and the second half of 2020 is looking forward to it.
    Reference source 1, cut the price of 10 billion, Blackstone picked up a big cheap 2, Blackstone $4.6 billion "King Blast", the front hard just sequoia high, medical feast came 3, the United States Blackstone Group founder Su Shimin: do big things and do small things is the same degree of difficulty 4, Takeda 15.8 billion sales business behind, is Asia's first drug company anxiety and wild hope.
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