Japan based Takeda Pharmaceutical Company Limited has announced that it has entered into an agreement to divest Takeda Consumer Healthcare Company Limited (TCHC), a wholly-owned subsidiary of Takeda focused on the consumer health care market primarily in Japan, to Oscar A-Co KK, a company controlled by funds managed by The Blackstone Group Inc. and its affiliates for a total value of JPY 242.0 billion.

Blackstone is one of the world leading investment firms and has extensive investment experience in the health care sector. The transaction is expected to close by March 31, 2021, subject to customary legal and regulatory closing conditions.

The portfolio to be divested to Blackstone includes a variety of over-the-counter (OTC) medicines and health products that generated total revenues of over JPY 60 billion in fiscal year 2019. TCHC’s strong regional brands include Alinamin, its top selling product and Japan’s first vitamin B1 preparation, and Benza, a cold remedy. Blackstone intends to develop the business together with current TCHC management and continue to employ its employees.

Takeda, which started TCHC as a separate business in April 2017 to further develop the consumer health care business in Japan, is now focused on highly innovative medicines across its five key business areas and working to address significant unmet patient needs in these fields.

Under Blackstone’s ownership, TCHC will benefit from increased strategic focus, resources and agility to support the growth and development of its important brands and to rapidly respond to evolving market conditions and diverse customer needs.