Teva Pharmaceutical Industries Ltd (NYSE: TEVA) is reportedly considering potential strategic options for its active pharmaceutical ingredients (API) unit, which could include a potential sale.
This news comes from individuals privy to the matter, who indicated that the current healthcare asset acquisitions continue despite the broader global slowdown in dealmaking.
Working with consultants, Teva is attempting to identify potential buyers for its API unit, which could be valued at approximately $2 billion in a potential transaction.
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The API unit of Teva includes more than 400 active ingredients utilized in various drugs intended for diseases ranging from migraines to diabetes and employs over 5,000 staff, as reported on the company’s website.
According to the sources, these discussions are at a nascent stage, and the company may still opt to retain the asset.
Teva spokesperson commented, “As part of our ongoing business conduct, we continue to regularly review our businesses,” Bloomberg noted, citing an emailed statement from the company’s spokesperson. Teva views the API business as strong and able to contribute to the company’s growth strategy, the spokesperson said.
In May, Teva’s newly appointed CEO, Richard Francis, announced a plan to reduce the production of certain generic drugs due to their low profitability and shift focus towards more innovative products.
Teva has been struggling with substantial debt and poor share price performance.
In May, the U.S. Supreme Court turned away hearing Teva’s challenge to a $235 million award to GSK plc (NYSE: GSK) in a patent dispute over a heart medication generics.
Price Action: TEVA shares are down 0.07% at $7.48 on the last check Wednesday.
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Source: https://finance.yahoo.com/news/tevas-strategic-evaluation-israeli-pharma-213825990.html