Taisho Pharmaceutical Holdings has offered to purchase UPSA, a French pharmaceutical consumer health business and brand owned by Bristol-Myers Squibb, for $1.6 billion.
“Today’s announcement marks the culmination of an in-depth strategic review to identify the best option to grow the UPSA business for the long-term,” said Giovanni Caforio, chairman and chief executive officer of Bristol-Myers Squibb.
“UPSA is a strong business that deserves the best possible opportunities for its employees and its future development. With Taisho we have found an experienced and reliable buyer with the strategic interest to successfully sustain and grow the business for the future.”
Bristol-Myers Squibb said it has been realigning its business portfolio in line with changes in its business and the future requirements of its changing pipeline, and the UPSA is focused on consumer medicines that are outside of the Bristol-Myers Squibb core focus.
In the statement, Bristol-Myers Squibb noted that it has with Taisho a history of conducting successful transactions. In 2009, Taisho entered the OTC market in certain Asian countries through the purchase of PT Squibb Indonesia from Bristol-Myers Squibb. The subsidiary of Taisho is now known as PT Taisho Pharmaceuticals Indonesia Tbk.
Taisho is a century old, the largest over-the-counter (OTC) drug company in Japan, and with UPSA, it will get important consumer medicines for patients in France, across Europe and additional countries.
BMS said that this transaction be completed during the first half of 2019, and would be about $0.04, dilutive to 2019 earnings.