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Takeda Simplifies Portfolio and Accelerates Deleveraging Through Two Divestitures

It agrees to sell Xiidra and divest TachoSil.

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(PRESS RELEASE) OSAKA, Japan — Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) (“Takeda”) announced that it has entered into agreements to divest its Xiidra (lifitegrast ophthalmic solution) 5% product (“Xiidra ”) to Novartis and its TachoSil Fibrin Sealant Patch (“TachoSil ”) to Ethicon as part of its strategy to focus on business areas core to its long-term growth and facilitate rapid deleveraging following its acquisition of Shire.

“These initial divestitures represent important steps in advancing the growth strategy Takeda outlined following our transformational acquisition of Shire earlier this year,” said Christophe Weber, president and CEO of Takeda. “We are working to strategically simplify and optimize our portfolio, while also rapidly deleveraging and continuing to invest in our growth drivers as a global, values-based, R&D-driven biopharmaceutical leader.”

Takeda will focus on its key business areas – Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies, Oncology and Neuroscience. This focus enables Takeda to continue to deliver highly-innovative medicines and transformative care to patients around the world, creating long-term value for Takeda shareholders.

Takeda will receive $3.4 billion upfront in cash and up to an additional $1.9 billion in potential milestone payments from Novartis, and approximately $400 million upfront in cash from Ethicon. Takeda intends to use the proceeds from these divestitures to reduce its debt and accelerate deleveraging toward its target of 2.0x net debt/adjusted EBITDA in the medium term. Takeda is committed to rapid deleveraging driven by strong cash flow and divestiture proceeds, while also simplifying its portfolio.

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At present, Takeda does not expect these divestitures to have a material impact on its FY2019 consolidated earnings forecast, scheduled to be announced on May 14th. The FY2019 forecast will be updated at a later date to reflect these divestitures once a reliable estimate of their impact can be made, which will depend upon the exact timing of transaction close.

Xiidra (lifitegrast ophthalmic solution) 5% Product

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Takeda has entered into an agreement to sell Xiidra to Novartis for a $3.4 billion upfront payment and up to an additional $1.9 billion in potential milestone payments. For the fiscal year ended December 31, 2018 adjusted net sales reported for Xiidra were $388 million. Following a robust process, Takeda determined that this transaction would create the most value for Takeda shareholders, and ensure the business will continue delivering innovative therapeutics to the patients and professionals who rely on them.

Xiidra is the first and only prescription treatment approved by the U.S. Food and Drug Administration for both signs and symptoms of dry eye disease, with a mechanism of action that targets inflammation. Upon close, approximately 400 employees, who are based primarily in the U.S. and Canada, will transition to Novartis.

The agreement is expected to close in the second half of calendar year 2019, subject to the satisfaction of customary closing conditions, receipt of required regulatory clearances and, where applicable, satisfaction of local works council
requirements.

Evercore Group LLC is acting as financial advisor to Takeda and Davis, Polk & Wardwell LLP is acting as Takeda’s legal advisor in this transaction.

TachoSil Fibrin Sealant Patch

Separately, Takeda has entered into an agreement to sell TachoSil , a surgical patch designed to achieve safe, fast and reliable bleeding control, to Ethicon. Upon close, approximately 80 employees will transition to Ethicon. Takeda recorded full year adjusted net sales for TachoSil of approximately $155 million in the fiscal year ended March 31, 2018.

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Under the terms of the agreement, upon close, Ethicon will acquire the assets and licenses that support the manufacturing, licensing and commercialization of TachoSil , while Takeda will maintain ownership of the manufacturing facility in Linz, Austria. Takeda has entered into a long-term manufacturing services agreement, under which it will continue to manufacture TachoSil products and supply them to Ethicon.

The agreement is expected to close in the second half of calendar year 2019, subject to the satisfaction of customary closing conditions, receipt of required regulatory clearances and, where applicable, satisfaction of local works council
requirements.

Nomura is acting as financial advisor to Takeda and Linklaters LLP is acting as Takeda’s legal advisor in this transaction.

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Press Releases

SKYGEN International Foundation Celebrates Anniversary

It has completed more than 72,000 vision tests in Tanzania.

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(PRESS RELEASE) MENOMONEE FALLS, WI – The SKYGEN International Foundation, the philanthropic arm of the healthcare benefits technology and administration company SKYGEN USA, celebrates a year of achievement and growth in its effort to provide vision services throughout underserved communities in Tanzania. Since July 2018, this non-profit organization provided more than 72,000 Tanzanians with vision tests and distributed more than 19,000 pairs of free prescription glasses and will expand its reach to more regions of the East African country in the coming months.

Craig Kasten, SKYGEN USA CEO and managing partner, and Greg Borca, co-founder of SKYGEN USA, advocated for the creation of the foundation in 2017 after a trip to Tanzania by Kasten shed light on the nearly nonexistent eye care in many regions of the country. Kasten gained the first-hand experience on the negative impact the lack of care had on schools within the communities.

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“There is an average of four eye doctors for every 2 million people in Tanzania,” says Kasten. “This past year has been extremely successful. We have expanded our capabilities to provide glasses to those in need, and we continue to see more students and community members receiving eye care that was not possible a year ago.”

On July 9, 2018, a team from SKYGEN International Foundation, led by executive director Lisa Sweeney, traveled to the Meru region of Tanzania to begin the groundwork for the project — the first of its kind for the SKYGEN USA group. Since then, the foundation has provided tens of thousands of locals with vision tests and provided more than 19,000 pairs of glasses; of those tested, over 50,000 are students and 2,300 are teachers. The glasses are built to each person’s specific prescription and in most cases delivered on the day of the test. In May alone, 11,000 people received vision tests, making it the organization’s most successful month to date. For students, the work the Foundation is doing means creating more opportunities for a better life. For adults and elders, it means restoring dignity and allowing them to lead richer, more fulfilling lives.

The foundation has consistently delivered life-changing healthcare benefits to those without access and makes it a priority to utilize its Enterprise System vision platform to maintain a record of those who have utilized the now-available eye care services. Because of its efforts, SKYGEN International Foundation recently received the Platinum Seal of Transparency award from GuideStar, the world’s largest source of nonprofit information. The top-tier award is given to organizations with high transparency and accuracy in regard to its reported results, overview of the organization and insight on the communities it serves.

“This award is a sign that we are moving in the right direction with the transparency of our work within the philanthropic community,” states Sweeney. “After providing thousands of people with access to eye care, I am eager to see the foundation continue as it begins providing services to more regions of Tanzania and beyond.”

On top of school visits, the foundation regularly conducts vision tests at clinics where locals can receive vision tests and prescription glasses. Previously, these efforts have focused on the Meru region of Tanzania. The foundation has recently expanded into the Arusha region, an area that can substantially benefit from accessible eye care. Following the anniversary, on August 18, 2019, a team will revisit the regions to build on its efforts, work with the local Tanzanian team and secure partnerships.

To learn more about the SKYGEN International Foundation, see current results and/or donate to the foundation, visit https://skygenfoundation.org.

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Press Releases

Essilor of America Celebrates Launch of Transitions Signature Gen 8

It comes with the introduction of the ‘Essilor Next Gen’ buy one, get one offer.

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(PRESS RELEASE) DALLAS, TX – Essilor of America kicked off back-to-school season with the launch of the Essilor Next GEN Offer, a consumer promotion designed to enable eyecare professionals to recommend the new Transitions Signature GEN 8T lenses to more patients and increase overall practice revenue while providing patients with their best vision possible. From July 10 through Dec. 31, 2019, when patients purchase Transitions Signature GEN 8 lenses with select Essilor lenses from participating practices, they can receive a free bonus pair of clear, qualifying lenses with frame purchase.

Engineered with proprietary technology, Transitions Signature GEN 8 lenses, the best overall photochromic lenses, provide all of the benefits patients want: protection, outdoor darkness, full indoor clarity, responsiveness and long-lasting performance with improved activation and fade back speed. In fact, 9 out of 10 Transitions lens wearers are satisfied and would repurchase.

The Essilor Next GEN Offer allows patients to customize their lenses to best fit their vision needs. When they purchase Transitions Signature GEN 8 lenses with any Crizal, they can choose between Varilux X Series T, Eyezen + or Essilor Single Vision lenses to qualify for a free pair of lenses with the offer2. For their free clear pair, patients can select any Crizal on any Varilux, Eyezen+ or Essilor Single Vision lenses.

“The Essilor Next GEN Offer will provide our customers a powerful incentive to increase trial of Transitions Signature GEN 8 lenses with all patients. We have designed the offer so that patients can choose from any single vision lenses with Crizal and Transitions Signature GEN 8, to ensure that our customers have a compelling tool to win during the critical back-to-school season,” says Sherianne James, senior vice president and chief marketing officer, Essilor of America. “We don’t want our customers to miss out on the opportunity with single vision wearers and we want them to recognize that many single vision patients desire their guidance and expertise. They trust their eyecare professionals to recommend the best lenses for them and with this offer, they can feel confident to introduce them to a superior photochromic experience and our best-in-class brands at an incredible value.”

In an effort to amplify awareness of the Essilor Next GEN Offer and generate patient traffic for its eyecare provider partners, Essilor will launch an extensive consumer advertising campaign consisting of national TV, connected TV, digital advertising including video and display ads, in-store advertising, and geo-targeted and smart search ads.

“From our advertising investment to our compelling promotion, we will bring Transitions Signature GEN 8 lenses to more consumers of all ages. We are committed to delivering exceptional support to our partners to deliver the best patient experience in the market,” James adds.

Any qualifying eyecare practice is eligible to participate in the Essilor Next GEN Offer. To participate, eyecare professionals must enroll their practice at MyEssilorLabs.com, PartnershipRewardsPortal.com, MyIDDLabs.com and/or Nassau247.com. Enrollment started June 3 and ends Dec. 30, 2019. Promotion period is July 10 (or enrollment date, whichever is later) until Dec. 31, 2019. Visit EssilorUSA.com for more details, full terms and conditions.

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Press Releases

ABB Optical Announces New Board Member

His career in the optical industry spans more than 25 years.

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John Weber

(PRESS RELEASE) CORAL SPRINGS, FL – ABB Optical Group, a national provider of optical products and business services for the eyecare industry, announced that John Weber has joined the its board of directors.

Weber’s career in the optical industry spans more than 25 years. He most recently served as chief commercial officer for Hoya Vision. Prior to that, he served as the chief executive officer of Vision-Ease Lens and previously held a number of senior leadership roles within CooperVision, Inc., culminating in his role as president.

“John has extensive experience in the eye care industry and will provide fresh insights as we continue to execute on our customer-centric strategy and vision for the future,” said ABB Optical CEO Tom Burke. “We share a strong passion for enhancing the customer experience for both eye care practitioners and patients, and I believe he will be an outstanding addition to our board.”

A graduate of the University of Minnesota with a degree in economics, Weber also holds an MBA from St. Mary’s College in Moraga, CA, and was a captain in the U.S. Army.

“I am excited to work alongside the leadership team to enhance ABB OPTICAL’s role in the optical marketplace,” said Weber. “I look forward to helping the company achieve its full potential as it continues to scale and grow its offerings to deliver best-in-class business solutions for eye care practitioners, thereby enabling them to provide the best care to their patients.”

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