Wyeth up on completing Japan unit buyout

Wyeth up on completing Japan unit buyout

	Published : Tue, 03 Apr 2007 18:45 By : Agencies Print this Story

NEW YORK (AP) - Shares of Wyeth rose Tuesday after the drug maker announced the completion of a four-year, $419.9 million buyout of Takeda Pharmaceutical Co.'s interest in the Japanese unit Wyeth K.K.

Wyeth shares were up 97 cents, or 2 percent, to $51.58 on the New York Stock Exchange as one of the strongest Big Pharma performers in afternoon trading. In comparison, the American Stock Exchange's Pharmaceutical Index, which tracks 15 major drug makers including Wyeth, rose 2.99 points, or less than 1 percent, to 345.63.

Madison, N.J.-based Wyeth said it bought the final 20 percent stake of Wyeth K.K from Takeda in an equity purchase agreement first announced in May 2003.

In its most recent annual report to the Securities and Exchange Commission, the company booked an equity purchase obligation of $225 million to buy the remaining 20 percent of Wyeth K.K. In April 2005, the company paid $92.7 million to increase its ownership to 70 percent from 60 percent, and paid $102.2 million to raise its stake to 80 percent the following year. The prices were based on a multiple of Wyeth K.K.'s net sales in each of the buyout years.

Wyeth K.K. sells products such as Enbrel for the treatment of rheumatoid arthritis and psoriasis in Japan, as well as Mylotarg, a bone marrow cancer treatment.

'The relationship between Wyeth and Takeda remains strong, and our current co-promotion of Enbrel with Takeda is central to making Japan one of the strongest markets for this important biotech product for the treatment of rheumatoid arthritis,' said Robert Essner, Wyeth chairman and chief executive, in a statement.

Japan makes up the second largest pharmaceuticals market outside of the U.S.

Chris Garland, a Wyeth spokesman, said that the completion of the buyout will have no effect on revenue and minimal effect on profits. In 2006, Wyeth's Japan sales with Takeda reached 78.1 billion yen, or about $657 million.

Wyeth reported worldwide Enbrel sales of $1.5 billion in 2006 out of a total $16.88 billion in revenue.