Teva Selling Northern Israeli Plant to FIMI Fund for $45 Million

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Teva workers protesting in Kiryat Shmona, Israel, December 14, 2017.
Teva workers protesting in Kiryat Shmona, Israel, December 14, 2017. Credit: Gil Eliahu

Teva Pharmaceutical Industries is expected to announce the sale of its Migada plant in Kiryat Shmona to FIMI Opportunity Funds for $45 million.

The sale of the Migada facility by the Israeli pharmaceutical giant is part of a move to sell off assets and to reduce its workforce in Israel as part of a cost-cutting plan unveiled a year ago aimed at overall savings of $3 billion

The facility, which has a workforce of 170, is one of the few Teva plants producing medical equipment. It is therefore not part of the Israeli generic drug giant’s core business and has not been the subject of major attention by company management.

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Migada’s leading product is Tevadaptor, which is designed to protect pharmacists and nurses from exposure to hazardous intravenously administered drugs used for treatments such as chemotherapy. Migada’s annual sales are estimated at $30 to $35 million and has an operating profit margin of 15% of turnover.

The purchase of Migada was made possible by a special collective labor agreement that Teva’s management struck with the plant’s workers’ committee and the Histadrut labor federation. The agreement, which FIMI also signed off on, preserves the workers’ rights on the job and provides them with a three-year safety net.

The pact also entitles employees who decide to resign or are dismissed by September of this year to increased severance benefits. Long-time employees who take early retirement are also to be provided enhanced benefits based on their years of seniority.

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