Teva Pharmaceutical Industries has agreed 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 its contraceptive, Paragard (intrauterine copper contraceptive), total $2.48 billion and will be used by Teva to progress repayment of term loan debt.
Under the agreement, CVC Capital Partners Fund VI will acquire a portfolio of products within Teva’s 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 the US, includes Ovaleap (follitropin alfa, r-hFSH), Zoely (nomegestrol acetate and estradiol), Seasonique (levonorgestrel, ethinyl estradiol), Colpotrophine (promestriene), Actonel (risedronate sodium), and additional products. Combined annual net sales of Ovaleap, Zoely, Seasonique, Colpotrophine, Actonel, and additional products were $258 million in 2016.
Teva has also entered into a definitive agreement under which Foundation Consumer Healthcare, a Pittsburgh, Pennsylvania-headquartered pharmaceutical products developer, will acquire the emergency contraceptive, Plan B One-Step, and Teva’s value brands of emergency contraception, Take Action (levonorgestrel), Aftera (levonorgestrel), and Next Choice One Dose (levonorgestrel) for $675 million in cash. Combined annual net sales of Plan B One-Step, Take Action, Aftera, and Next Choice One Dose for 2016 were $140 million.
Completion of the transactions is subject to customary conditions, including antitrust clearance in the US and European Union, respectively, together with employee consultations. The transactions are expected to close before the end of 2017.
With the divestiture of Teva’s global women’s health products and the company’s planned divestiture of the Oncology and Pain business in Europe, Teva is on track to deliver net proceeds of at least $2 billion from the divestiture of non-core assets. The company is also reinforcing its strategic focus in central nervous system and respiratory disorders as its core global therapeutic areas of focus within its global specialty medicines portfolio.
Source: Teva Pharmaceutical Industries