Takeda Pharmaceutical Company has agreed to divest the assets, marketing rights and authorisations related to four diabetes products in Japan to Teijin Pharma for JPY133bn ($1.25bn).

The portfolio of non-core type 2 diabetes products included in the sale consists of Nesina, Liovel, Inisync and Zafatek, sold in Japan.

The diabetes drugs have generated a total of around JPY 30.8bn ($280m) in sales in the financial year 2019, said the company.

The company is expected to continue the manufacture and supply of the products to Teijin Pharma, to ensure uninterrupted access to patients.

Takeda Japan pharma business unit president Masato Iwasaki said: “Today’s transaction enables us to sharpen our focus in Japan on developing and delivering highly-innovative products within Takeda’s five key business areas.

“We look forward to maintaining our seamless collaboration with Teijin Pharma as we continue to manufacture and supply these valued products on their behalf, and to making even greater contributions to our purpose of achieving better health and a brighter future for people in Japan and around the world.”

Takeda to use the transaction proceeds to reduce its debt

Takeda said that despite their importance in the country, the products included in the sale are outside of its chosen business areas of gastroenterology (GI), rare diseases, plasma-derived therapies, oncology, and neuroscience.

The company intends to use the proceeds from the transaction to reduce its debt.

Takeda said that has surpassed its target of $10bn non-core asset divestiture. Including the current asset sale, the company has announced 12 deals since January 2019, for a total aggregate value of up to approximately $12.9bn.

In September last year, Takeda agreed to sell its portfolio of select non-core prescription pharmaceutical products sold predominantly in Europe and Canada to Cheplapharm.

The sale included cardiovascular or metabolic and anti-inflammatory products along with Calcium.