Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) announced today that it had entered into two agreements to sell the remaining assets of its specialty global women’s health business for $1.38 billion. Proceeds from these sales, combined with proceeds from the recently announced sale of intrauterine copper contraceptive Paragard to CooperSurgical, total $2.48 billion, and will be used by Teva to progress repayment of term loan debt.
Teva has entered into a definitive agreement under which CVC Capital Partners Fund VI will acquire a portfolio of products within its global women’s health business across contraception, fertility, menopause and osteoporosis for $703 million in cash. The portfolio of products, which is marketed and sold outside of the US, includes Ovaleap, Zoely, Seasonique, Colpotrophine, Actonel and additional products. Combined annual net sales of these products were $258 million in 2016.
Teva has also entered into a definitive agreement under which Foundation Consumer Healthcare will acquire Plan B One-Step and Teva’s value brands of emergency contraception, Take Action, Aftera, and Next Choice One Dose for $675 million in cash. Combined annual net sales of these products were $140 million in 2016.
“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,” said Teva interim CEO Dr. Yitzhak Peterburg. “With these initial divestitures we have exceeded expectations, leveraging the tremendous value we have built within Teva’s specialty business.” Peterburg continued “Teva is extremely pleased to enter into these agreements with CVC Capital Partners and Foundation Consumer Healthcare, which progress our ability to repay term loan debt while also providing a clear path forward for these important products to continue to be available to women throughout the world.”
Completion of the transactions is subject to customary conditions, including antitrust clearance in the US and EU, together with employee consultations. The transactions are expected to close before the end of 2017. Until the transactions are completed, Teva will continue to market the products in the normal course, providing full support to manage the business and to meet the needs of customers and patients.
Teva said in its announcement that with the divestiture of its global women’s health products and the planned divestiture of the Oncology and Pain business in Europe, it is reinforcing its strategic focus on CNS and Respiratory as its core global therapeutic areas of focus within Global Specialty Medicines. In these areas Teva says that it maintains a strong pipeline and portfolio globally, and will continue to invest in creating long term value.
Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2017
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