Teva completes sale of women’s health for $1.38 billion
pharmafile | September 19, 2017 | News story | Manufacturing and Production, Sales and Marketing | Teva, biotech, drugs, pharma, pharmaceutical, women's health
Teva announced last week that it had reached an agreement to sell Paragard, an intrauterine copper contraceptive, to CooperSurgical for $1.1 billion and it has now announced the sale of the rest of the unit for $1.38 billion. The sales confirm Teva’s commitment to raising $2 billion to manage its debt payments by the end of the year.
CVC Capital Partners Fund V1 will pay the majority of the fee for the combination of contraception, fertility, menopause and osteoporosis products that form a part of the unit. The rest of the deal is taken up by Foundation Consumer Healthcare, which will acquire Teva’s brand of emergency contraceptives for $675 million.
Total sales of the units were $398 million for 2016, but the divestitures affirm Teva’s decision to slim down the business, cutting away non-core assets. The combination of this, alongside the previously announced move to cut away 7,000 jobs and to close 15 factories by the end of 2018, should allow for a clearer path for incoming CEO, Kåre Schultz.
The current CEO of Lundbeck still has a mammoth job to turnaround the beleaguered business but with these tough decisions already taken, he will be able to imprint his own plan from a relatively fresh start. The main challenge being to reduce the significant debt the company holds after its ill-advised $40 billion takeover of Allergan’s generics business.
“Today’s announcement, coupled with the recent announcement of the sale of Paragard for $1.1 billion, demonstrate Teva’s commitment to delivering on our promise to generate net proceeds of at least $2 billion from the divestiture of non-core assets,” stated Dr. Yitzhak Peterburg, Interim CEO. “With these initial divestitures we have exceeded expectations, leveraging the tremendous value we have built within Teva’s specialty business.”
The deals are expected to complete before the end of 2017 and with the required financial target hit, it leaves the company able to focus on a buyer for its European oncology and pain assets, as another part of its plan to divest non-core assets.
Ben Hargreaves
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