IMS Company Profiles - Report Buyer

IMS COM PANY PRO FILES TAKEDA
Back ground
• Sharp en ing focus on prescription pharmaceuticals
Founded in 1781 by Chobei Takeda I, Takeda started out as a small busi ness sell ing Jap a nese and Chi -
nese tra di tional med i cines in Doshomachi, Osaka. In 1871, Chobei Takeda IV was one of the first in Ja pan
to im port for eign med i cines, by form ing a co op er a tive un ion in Yo ko hama to pur chase drugs from for eign
trad ing com pa nies. To day, Takeda dom i nates the Jap a nese phar ma ceu ti cal in dus try and is amongst the
top 20 phar ma ceu ti cal groups in the world. In re cent years Takeda has sold off non-core busi nesses to
con cen trate on its pharmaceuticals in ter ests, which include OTC products as well as ethicals.
These di ves ti tures have in cluded the sale of its re main ing 34% share in the BASF Takeda Vi ta min joint
ven ture to BASF Ja pan, com plet ing its exit from the do mes tic bulk vi ta min busi ness. Takeda has also dis -
posed of its Syn thetic Rub ber La tex busi ness, trans ferred its Food and Vi ta mins ac tiv i ties to a joint ven -
ture with Kirin (Ja pan), which ac quired all of the jv in 2007, and trans ferred its do mes tic agro chemi cal
busi ness to a joint ven ture, Sumitomo Chem i cal Takeda Agro Com pany. It has also di vested to
Schering-Plough (USA) its 40% stake in the two com pa nies’ Jap a nese an i mal health jv, Takeda
Schering-Plough An i mal Health, which be came a wholly-owned sub sid iary of S-P, drop ping Takeda from
its name. In 2005, Takeda sold five small sub sid iary com pa nies to Osaka Gas Chem i cals, in clud ing Ja pan
EnviroChemicals, which had been spun off two years be fore into an independent subsidiary as a prelude
to full divestment.
In 2006, Takeda sharp ened its fo cus on pre scrip tion drugs fur ther by ex it ing the Mitsui Takeda Chem i cals
Inc. joint ven ture (MTCI), by trans fer ring its share of the busi ness to Mitsui Chem i cals, Inc. (Ja pan). MTCI
was es tab lished as a joint ven ture be tween MCI (51%) and Takeda (49%) in 2001, and it was stip u lated
in the orig i nal agree ment that the trans fer of shares held by Takeda would take place af ter five years from
the start of MTCI’s commercial operation.
Also in 2006, Takeda started the pro cess of di ves ti ture of its do mes tic food and bev er age busi ness to a
joint ven ture set up with the Jap a nese firm House Foods Cor po ra tion. The House Wellness Foods Cor po -
ra tion was es tab lished, 66%-owned by House Foods and 34%-owned by Takeda. The pro cess will in volve
the trans fer of most (298) Takeda Food em ploy ees for 18 months be fore the jv is dis solved and House ac -
quires Takeda’s hold ing and con verts the jv to a wholly owned subsidiary.
Takeda has suc ceeded in ex pand ing over seas by set ting up for eign sub sid iar ies and joint ven tures, no ta -
bly that with Abbott (USA) in North Amer ica (TAP). TAP, dis solved in mid-2008, had launched a num ber
of lu cra tive, block buster drugs, in clud ing the antiulcerant Prevacid (lansoprazole), antihypertensive
Blopress (candesartan cilexetil), the oral antidiabetic Actos (pioglitazone), and the hor monal prod uct
Lupron/Leuplin (leuprorelin).
M&A Ac tiv ity
• On col ogy growth in Ja pans bggest acquisition
Takeda aims to be come one of the top three on col ogy com pa nies and 2008 was a year of on col ogy deals
for Takeda with sub stan tial agree ments with Amgen, Cell Genesys, Mil len nium and Alnylam, boost ing its
ca pa bil i ties in this area. In May 2008, Takeda com pleted its Yen1 tril lion ($8.8 bil lion) ac qui si tion of Mil -
len nium Pharmaceuticals, with Mil len nium be com ing a wholly-owned sub sid iary of Takeda but con tin u ing
op er a tions as a stand alone busi ness in the US. Pres i dent Dr Deborah Dunsire will con tinue to lead the
com pany and Takeda has ex pressed its in tent to re tain Mil len nium em ploy ees (around 1,000 em ploy -
ees). This is the larg est ac qui si tion ever made by Takeda and more over, any Jap a nese phar ma ceu ti cal
com pany, dem on strat ing Takeda’s com mit ment to be come a true global phar ma ceu ti cal com pany with
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