Teva Pharmaceutical Industries Limited (New York Stock Exchange: teva; level: teva) is considering selling its Active Pharmaceutical Ingredient (API) production business in a deal that could reach $2 billion, Bloomberg reports. Sources told Bloomberg that the company is working with consultants to gauge interest in this matter, although no final decision has been made on selling the API plant.
Related articles
Teva is seeking to reinvent itself as a branded drug developer
Why did Teva drop 20% in April and May?
Teva concludes US opioid settlement
Teva loses profit and outperforms analysts in revenue
Several weeks ago, Teva presented its new strategy, which included focusing on returning to growth by emphasizing its branded and innovative pharmaceutical segment. In introducing the strategy, Teva’s new CEO, Richard Francis, referred to the company’s API activity. He said, “I’ve found that Teva has a great API business and the market is growing. We’re going to create a business unit that’s not just focused on Teva in order to give it the ability to grow.”
In response to a question, he said there is no plan to spin off the business completely because Teva identifies great potential with high profits in it.
API production at Teva is an activity in which the company also manufactures for third parties. According to company data, Teva has API manufacturing sites and produces more than 350 products in this field.
Teva said in response, “We believe Teva Active Pharmaceutical Ingredients (TAPI) is a strong company with amazing capabilities and can grow and in this way can contribute to the recently announced strategy. As part of the routine business management, we regularly study businesses and opportunities.”
Published by Globes, Israel business news – en.globes.co.il – on July 6, 2023.
© Copyright Globes Publisher Itonut (1983) Ltd., 2023.
