Teva intends to divest API business
Teva announced its intention to divest its active-pharmaceutical ingredient business, or "TAPI". TAPI is a global leader in the small-molecule API industry, with approximately 4,300 employees worldwide.
The intent to divest TAPI will allow Teva to maximize current and potential revenue streams, focusing on capital reallocation towards growth and innovation, and to better serve patients. The intended divestiture is expected to create additional value for Teva’s shareholders and other stakeholders by allowing the company to better address distinct, growing markets with its product offerings.
In addition, this move also will allow the divested company to pursue new growth strategies, enabling it to maximize an array of opportunities in the $85 billion global API market, Teva said.
[Read more: Teva rolls out generic Nexavar tablets]
"The divestiture of TAPI will play an important role in the execution of our Pivot to Growth strategy in this new era for Teva, as it will allow us to increase the focus on our core business, continue to invest in our growth drivers, accelerate our innovative and biosimilar pipeline, and position our generics portfolio and pipeline to drive growth for the future," said Richard Francis, Teva's president and CEO.
"Our goal, operating outside of Teva, is to enable TAPI to maximize its potential for growth, capture more opportunities with third-party customers, leverage its technology, expand its capabilities and continue to support generics players and innovators, including Teva, worldwide," said R. Ananth, CEO of TAPI.
[Read more: Teva obtains FDA nod for generic Forteo]
Teva expects the intended divestiture to be completed in the first half of 2025, subject to reaching a satisfactory agreement on transaction terms with a prospective purchaser, the successful satisfaction of closing conditions and the approval of an agreed transaction by its board of directors.