Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Teva to sell contraceptive brand Paragard in $1.1 billion deal

Published 11/09/2017, 23:35
© Reuters. FILE PHOTO -  A building belonging to Teva Pharmaceutical Industries, the world's biggest generic drugmaker and Israel's largest company, is seen in Jerusalem
LUN
-
TEVA
-
WFC
-
HG
-
TEVA
-
COO
-

(Reuters) - Teva Pharmaceutical Industries (TA:TEVA), (N:TEVA) on Monday agreed to sell its contraceptive brand Paragard to a unit of Cooper Cos (N:COO) for $1.1 billion (834.91 million pounds), on a day the struggling Israeli drugmaker named industry veteran Kare Schultz as CEO.

The company's U.S.-listed shares were up 1.4 percent at $18.75 in extended trading after closing up 19.3 percent in regular trading.

The sale of the business is the first step in the planned divestment of non-core assets and the proceeds would be used to repay term loan debt, Teva said.

Saddled with about $35 billion in debt, Teva has speeded up plans to divest non-core assets, Reuters reported last month, citing sources.

"Investors will like this news, as in addition to a good price for the asset, and the recent share decline has been likely due in part to investor worries that the debt burden is high," Wells Fargo (NYSE:WFC) Securities analyst David Maris said in a note.

Teva's U.S.-listed stock has halved since early August when it cut its forecasts.

The company said on Monday it continued to look for divestiture opportunities, including the sale of the remaining assets of its global women's health business, as well as its oncology and pain businesses in Europe.

Teva said it expects to generate at least $2 billion in total proceeds from the sale of these businesses, as well as additional asset sales to be executed by the end of 2017.

The deal with Cooper includes Teva's manufacturing facility in Buffalo, NY, which makes Paragard exclusively.

Paragard, an intrauterine copper contraceptive device, posted revenue of about $168 million for the year ended June 30.

Teva said it will continue to manufacture and sell Paragard in the United States, until the deal is completed, which is expected before the year end.

© Reuters. FILE PHOTO -  A building belonging to Teva Pharmaceutical Industries, the world's biggest generic drugmaker and Israel's largest company, is seen in Jerusalem

Earlier in the day, Teva named smaller peer Lundbeck's (CO:LUN) Chief Executive Schultz as its CEO.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.