Takeda to Acquire Multilab, Enhancing its Business Infrastructure in Brazil

AsiaNet 49457

OSAKA, Japan, and SAO JERONIMO, Brazil, May 25/PRN=KYODO JBN/ --

    Takeda Pharmaceutical Company Limited (Osaka, Japan, "Takeda") and Multilab

Industria e Comercio de Produtos Farmaceuticos Ltda. (Rio Grande do Sul,

Brazil, "Multilab") today jointly announced that both parties have signed an

agreement whereby Takeda Farmaceutica Brasil Ltda. (Sao Paulo, Brazil, "Takeda

Brazil"), a wholly-owned subsidiary of Takeda, aims to acquire Multilab.

    Takeda expects that the transaction will be finalized by the end of 2Q of

its fiscal year 2012. Under the agreement, Takeda Brazil will acquire Multilab

in cash for Brazilian Real (BRL) 500 million upfront and up to BRL 40 million

in additional future milestone payments to the owners of Multilab. Other

financial conditions were not disclosed.

    Multilab is a mid-sized pharmaceutical company with annual net revenues of

BRL 140 million in 2011. Its business consists of branded generics and OTC

(over-the-counter) pharmaceutical products. Retail sales for the company grew

in excess of +20% p.a. over the period 2009 - 2011.

    Takeda has an established presence in Brazil, manufacturing and marketing

both prescription drugs as well as well-known brands such as Neosaldina(R)

(analgesic), Eparema(R) (digestive) and Nebacetin(R) (anti-bacterial)

comprising its OTC portfolio.

    The acquisition of Multilab will position Takeda as one of the top ten

pharmaceutical companies in Brazil(1), enriching its offering to better cater

to the diverse needs of the Brazilian population. Multilab's leading products

include Multigrip(R), the country's best-selling OTC product for cold and flu

treatment in units(2), which Takeda believes will be an excellent addition to

its existing OTC product line in Brazil.

    Multilab has well established distribution through regional wholesalers and

small to mid-sized independent pharmacies, in particular in emerging regions of

the country, which is expected to complement Takeda's strong relationships with

major wholesalers, key chains and pharmacies in more established cities and

state capitals.

    "This acquisition significantly reinforces Takeda's position in Brazil,

which is the world's sixth largest economy and the biggest in South America,"

said Jostein Davidsen Corporate Officer, Head of Emerging Markets Commercial

Operations for Takeda. "Takeda has ambitious plans for growth in emerging

markets. Brazil is our second largest emerging market after Russia/CIS in terms

of revenues and the acquisition of Multilab is a clear signal of our intention

to become a significant player both in Brazil and other high-growth markets."

    "Multilab will benefit from becoming part of the Takeda group, enabling the

company to reinforce its market position and reach more patients with its key

products in Brazil," said Hilton Cavedon, Executive Director of Multilab.

    Takeda does not expect to revise earnings guidance for its 2012 fiscal year

in connection with this acquisition.

    Key Strategic Benefits

    Takeda expects the acquisition of Multilab will:

    - Strengthen Takeda's strategic position in Brazil, diversifying its

      portfolio to better meet the needs of the local market, and the emergence

      of the middle class consumer.

    - Take advantage of Multilab's strong regional distribution network and

      coverage of high growth markets in Brazil, such as the Northeast region

of

      the country.

    - Allow Takeda to complement its existing OTC portfolio with important

      products, such as Multigrip(R), Brazil's best-selling cold and flu

remedy   

      in units.

    1. Acquisition Summary

    (1) Acquiring company: Takeda Farmaceutica Brasil Ltda

    (2) Owners of Multilab: Mr. Genesio Cervo and Ms Rejane Gobbi

    (3) Payment: Cash

    (4) Acquisition amount: Brazilian Real 500 million (excl.

        conditional/milestone payments)

    (5) Planned date of completion: by the end of Q2 FY2012 of Takeda

    (6) Financial advisor to Takeda: J.P. Morgan Securities LLC

    (7) Legal advisor to Takeda: Mattos Filho Veiga Filho Marrey Jr. e Quiroga

        Advogados

    (8) Financial advisor to Multilab: BTG Pactual

    (9) Legal advisor to Multilab: Pinheiro Neto Advogados

    2. Profile of Multilab

    (1) Corporate Name: Multilab Industria e Comercio de Produtos Farmaceuticos

        Ltda.

    (2) Location: Sao Jeronimo/Rio Grande do Sul, Brazil

    (3) Representative: Executive Director, Hilton Cavedon

    (4) Year of establishment: 1988

    (5) Capital stock: 41,750 thousand Brazilian Real

    (6) Number of employees: Approximately 650

    (7) Relationship with Takeda: No matters to report regarding capital,

        personal and transactional relationship between Takeda and Multilab

    About Takeda Pharmaceutical Company Limited

    Located in Osaka, Japan, Takeda is a research-based global company with its

main focus on pharmaceuticals. As the largest pharmaceutical company in Japan

and one of the global leaders of the industry, Takeda is committed to striving

toward better health for patients worldwide through leading innovation in

medicine. Additional information about Takeda is available through its

corporate website, http://www.takeda.com.

    About Multilab Industria e Comercio de Produtos Farmaceuticos Ltda.

    Founded in 1988, Multilab is among the leading companies of national

capital of the Brazilian pharmaceutical market, with headquarters in Sao

Jeronimo, Rio Grande do Sul. Over the years, it has been consistently investing

in its manufacturing operation, in people and the expansion of its portfolio,

including OTC, RX, Generic Line and Hospital. For more information, visit the

company's corporate site: http://www.multilab.com.br

    1) Combined ranking based on IMS PMB Mar'12 YTD

    2) R05A0 - IMS PMB Mar'12 YTD in Units

    SOURCE: Takeda Pharmaceutical Company Limited