UCB sells generics business
pharmafile | November 10, 2014 | News story | Manufacturing and Production, Sales and Marketing | Belgium, UCB, generics, kremers urban, us conern
UCB is to sell its US generics business Kremers Urban to two private equity firms in a $1.5 billion deal.
The Belgian pharma manufacturer is offloading the US concern to Advent International and Avista Capital Partners and says this is part of a plan to concentrate purely on core activities.
“This is another step for UCB to enhance focus on our core business in neurology and immunology,” explains Roch Doliveux, chief executive of UCB.
UCB will use the proceeds of the sale to reduce its debt and “increase the company’s capacity strategic investments”, which translates as giving the firm room for manoeuvre with new projects which will accelerate growth or improve its pipeline.
UCB will receive the money for Kremers when the transaction closes, which is expected to be by the first quarter of 2015 – subject to the usual conditions including regulatory approval.
“Kremers Urban has been an important enabler to build UCB’s core business,” says Detlef Thielgen, chief financial officer of UCB. “It’s now the right time from a value perspective to focus on our core business and to offer Kremers Urban further growth opportunities with two strong organisations.”
UCB’s adjusted financial outlook for 2014 is unchanged for the core business, but it would now take into account the Kremers divestment, Thielgen adds.
UCB reckons this will mean total revenue of €3.15-3.25 billion, underlying profitability of €590-620 million and core earnings per share of €1.40-1.55 for this year.
“Our growing core business and UCB’s progressing early and late-stage pipeline now allow us to focus even more on providing innovative solutions to patients living with severe diseases,” comments Jean-Christophe Tellier, chief executive-elect of UCB.
Kremer will be treated as ‘discontinued operation’ from 1 January 2014 onwards – which means it will no longer be included in the key performance indicators for UCB’s recurring underlying performance.
More details of the impact of the deal will be available in UCB’s 2014 results, which are scheduled to be announced on 27 February 2015.
Adam Hill
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