Teva Announces Agreement to Divest Teva-Takeda Business Venture in Japan

06 Dec, 2024

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has entered into an agreement with JKI Co., Ltd., a company established by J-Will Partners Co., Ltd., to divest its Teva-Takeda business venture in Japan. This includes the transfer of all shares of Teva Takeda Pharma Limited and its wholly owned subsidiary, Teva Takeda Yakuhin Ltd., to JKI.

This agreement is in line with Teva's "Pivot to Growth" strategy, which focuses on prioritizing innovative medicines. The divestment will allow Teva to concentrate on expanding its innovative medicines portfolio in the Japanese market. The Teva-Takeda venture, which includes generics and legacy products, is a strategic move to streamline operations and improve efficiency.

Teva previously signaled its intention to explore strategic changes in Japan, including the possible divestment of its Teva-Takeda business. This decision reinforces the company's commitment to its growth strategy and its focus on driving the business toward high-value segments, such as the development and delivery of innovative treatments.

The expected completion date for the divestiture is April 1, 2025, pending the standard closing conditions and required regulatory approvals. As part of the agreement, all employees of the Teva-Takeda business venture in Japan will remain with the business under the new ownership, ensuring continuity for the team and operations.

Mark Sabag, Teva’s Executive Vice President for International Markets Commercial, emphasized that this move is a key part of Teva's broader growth strategy. He also expressed confidence that the agreement with JKI would maintain the availability of high-quality, affordable medicines for patients in Japan. This agreement marks an important step in Teva's ongoing transformation.

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