Takeda signs agreement to acquire Multilab

Takeda Pharmaceutical Company Limited (Osaka, Japan, "Takeda") and Multilab Indústria e Comércio de Produtos Farmacêuticos Ltda. (Rio Grande do Sul, Brazil, "Multilab") today jointly announced that both parties have signed an agreement whereby Takeda Farmacêutica Brasil Ltda. (São Paulo, Brazil, "Takeda Brazil"), a wholly-owned subsidiary of Takeda, aims to acquire Multilab.

Takeda expects that the transaction will be finalized by the end of 2Q of its fiscal year 2012. Under the agreement, Takeda Brazil will acquire Multilab in cash for Brazilian Real (BRL) 500 million upfront and up to BRL 40 million in additional future milestone payments to the owners of Multilab. Other financial conditions were not disclosed.

Multilab is a mid-sized pharmaceutical company with annual net revenues of BRL 140 million in 2011. Its business consists of branded generics and OTC (over-the-counter) pharmaceutical products. Retail sales for the company grew in excess of +20% p.a. over the period 2009 - 2011.

Takeda has an established presence in Brazil, manufacturing and marketing both prescription drugs as well as well-known brands such as Neosaldina^® (analgesic), Eparema^® (digestive) and Nebacetin^® (anti-bacterial) comprising its OTC portfolio.

The acquisition of Multilab will position Takeda as one of the top ten pharmaceutical companies in Brazil⁽¹⁾, enriching its offering to better cater to the diverse needs of the Brazilian population. Multilab's leading products include Multigrip^®, the country's best-selling OTC product for cold and flu treatment in units⁽²⁾, which Takeda believes will be an excellent addition to its existing OTC product line in Brazil.

Multilab has well established distribution through regional wholesalers and small to mid-sized independent pharmacies, in particular in emerging regions of the country, which is expected to complement Takeda's strong relationships with major wholesalers, key chains and pharmacies in more established cities and state capitals.

"This acquisition significantly reinforces Takeda's position in Brazil, which is the world's sixth largest economy and the biggest in South America," said Jostein Davidsen Corporate Officer, Head of Emerging Markets Commercial Operations for Takeda. "Takeda has ambitious plans for growth in emerging markets. Brazil is our second largest emerging market after Russia/CIS in terms of revenues and the acquisition of Multilab is a clear signal of our intention to become a significant player both in Brazil and other high-growth markets."

"Multilab will benefit from becoming part of the Takeda group, enabling the company to reinforce its market position and reach more patients with its key products in Brazil," said Hilton Cavedon, Executive Director of Multilab.

Takeda does not expect to revise earnings guidance for its 2012 fiscal year in connection with this acquisition.

Key Strategic Benefits

Takeda expects the acquisition of Multilab will:

• Strengthen Takeda's strategic position in Brazil, diversifying its portfolio to better meet the needs of the local market, and the emergence of the middle class consumer.
• Take advantage of Multilab's strong regional distribution network and coverage of high growth markets in Brazil, such as the Northeast region of the country.
• Allow Takeda to complement its existing OTC portfolio with important products, such as Multigrip^®, Brazil´s best-selling cold and flu remedy in units.