Bidders lining up for Teva women’s health unit
Bidders are reportedly lining up for Teva’s women’s health unit, which the Israeli drug firm is selling off as part of a programme to cut its $35 billion debt.
At the beginning of the month Teva posted a disastrous set of financial results showing losses of almost $6 billion, mainly down to a $6.1 billion charge as the firm wrote down the value of its US generics business.
Although Teva is the world’s largest producer of generics, it is also has a range of branded drugs led by multiple sclerosis drug Copaxone – and unfortunately sales are also sliding in this division too.
Following its acquisition of Allergan’s generics business last year, Teva has also built up debts of around $35 billion and is looking to sell its women’s health business to help pay off some of the debt in the short term.
Still without a permanent CEO after Erez Vigodman stepped down in February, the drugmaker cut its dividend and earnings goals this year and warned investors it may breach debt agreements if cash flow weakens.
Bloomberg reported that the women’s health unit is drawing interest from consumer goods firm Church and Dwight and medical devices firm Cooper Companies.
Other potential bidders include India’s Intas Pharmaceuticals and French buyout firm Astorg Partners, which is looking to expand its portfolio drugs firm HRA Pharma.
Teva may sell the business as a whole or split the US and EU operations after bidder showed interest in separate parts, Bloomberg said, citing sources close to the negotiations.
Both companies are considering bids for US operations, and the deadline for final bids is as soon as this week. The portfolio may fetch around $2 billion, according to the report.
Teva is also considering selling its European oncology and pain treatments, and its Medis unit, as well as some respiratory products, according to Bloomberg. Several private equity firms are also interested in Teva’s portfolio, according to the report.
Teva and the companies reportedly involved in the bid have not publicly commented on the matter, Bloomberg said.
Don't miss your daily pharmaphorum news.
SUBSCRIBE free here.