Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is considering the sale of its active pharmaceutical (API) ingredients production activities in a deal that could reach $2 billion, "Bloomberg" reports. The company is working with advisors to gauge interest on the matter, although no final decision has been made on whether to sell the API plant, the sources told "Bloomberg."
Several weeks ago, Teva presented its new strategy, which included focusing on a return to growth by stressing the branded and innovative drug sector. When presenting the strategy, Teva's new CEO Richard Francis referred to the company's API activity. He said, "I have discovered that Teva has a wonderful API business and that the market is growing. We will create a business unit that does not only focus on Teva in order to give it the ability to grow."
In response to a question he said that there is no plan to completely separate the business because Teva identifies in it significant potential with high profits.
API production at Teva is an activity in which the company also manufactures for third parties. According to the company's data, Teva has API manufacturing sites and produces more than 350 products in the field.
Teva said in response, "We believe that Teva Active Pharmaceutical Ingredients (TAPI) is a strong business with amazing capabilities and that it can grow and in that way it can contribute to the strategy that was recently announced. As part of routine business management, we regularly examine businesses and opportunities."
Published by Globes, Israel business news - en.globes.co.il - on July 6, 2023.
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