Teva Pharmaceuticals said on Monday it would sell the remaining assets in its specialty women’s health business for $1.38 billion in two separate transactions.
The company, Israel’s biggest and the world’s largest maker of generic drugs, said it would use proceeds from the sales, along with those from its recently announced sale of contraceptive brand Paragard, to repay debt.
The European private equity fund CVC Capital Partners Fund VI will pay $703 million in cash for a portfolio in Teva’s global women’s health business including contraception, fertility, menopause and osteoporosis products, Teva said. Net sales of these products in 2016 amounted to $258 million.
Teva also agreed to sell its Plan B One-Step and its brands of emergency contraception to Foundation Consumer Healthcare for $675 million in cash. Combined annual net sales of these products were $140 million last year.
Shares of Teva were up 0.3% at 64.63 shekels ($18.34) in late trading on the Tel Aviv Stock Exchange.
Monday’s announcement, coupled with Teva’s announcement last week that it would sell Paragard to a unit of Cooper Companies for $1.1 billion, demonstrates the company’s commitment to delivering on its promise to generate net proceeds of at least $2 billion from the divestitures, Teva acting CEO Yitzhak Peterburg said. “With these initial divestitures we have exceeded expectations,” he added.
Teva last week poached Lundbeck’s Kare Schultz as its new CEO, handing the industry veteran the urgent task of convincing investors of the struggling Israeli firm’s future.
An acquisition spree saddled Teva with huge debts and eroded confidence in the company, whose stock has halved since early August when it cut its forecasts.
Teva has said it plans to pay down $5 billion of debt by year-end and is selling off businesses such as its women’s health business and European oncology and pain unit.
The latest transactions are expected to close before the end of 2017.
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