Takeda reaches deal to buy Nycomed for 9.6 billion euros

Takeda announced on Thursday a definitive agreement to acquire Nycomed for 9.6 billion euros ($13.7 billion). Takeda CEO Yasuchika Hasegawa said the deal, which excludes Nycomed’s US dermatology business, will give the company “an immediate strong presence in the high-growth emerging markets while doubling Takeda’s European sales.” The transaction is expected to close by the end of September.

Takeda will gain access to Nycomed’s products, including the chronic obstructive pulmonary disease therapy Daxas (roflumilast), which the Japanese company said “is expected to be a major source of revenue growth.” The product is marketed with Merck & Co. in certain European countries, while it is sold in the US as Daliresp, where revenue is shared with Forest.

Last year, Nycomed recorded sales of 3.2 billion euros ($4.5 billion), with 39 percent of revenue coming from emerging markets. Takeda noted that the acquisition of Nycomed will increase its annual revenue and per-share earnings by more than 30 percent.

Commenting on the deal, Barclays analyst Atsushi Seki said that “Takeda is buying time with this acquisition, it was slow to enter emerging markets.” However, the analyst noted that “it’s an expensive purchase and may not be enough to make up for revenue that will be lost from Actos,” when generic versions of the diabetes drug reach the market in 2012.

Meanwhile, Nycomed’s US dermatology unit will become a stand-alone specialty company focused on dermatology with net revenue approaching $500 million and over 700 employees.