Teva Announces Completion of Global Women’s Health Divestiture to CVC Capital Partners
February 01 2018 - 7:00AM
Business Wire
Teva to receive $703 million cash proceeds to
progress repayment of term loan debt
Teva Pharmaceutical Industries Ltd., (NYSE and TASE: TEVA) today
announced it has completed the sale of a portfolio of products
within its global women’s health business across contraception,
fertility, menopause and osteoporosis for $703 million in cash. The
portfolio, which is marketed and sold outside of the U.S., includes
Ovaleap®, Zoely®, Seasonique®, Colpotrophine®, Actonel® and
additional products. The business will be known as “Theramex”.
“Today’s announcement marks the completion of Teva’s planned
divestment of specialty products in women’s health,” stated Michael
McClellan, Executive Vice President and Chief Financial Officer at
Teva. “Teva is very pleased to complete the sale of our global
women’s health portfolio today, which brings a significant influx
of cash needed to further progress our ability to repay term loan
debt. With the completion of today’s transaction, Teva has
generated total proceeds of $2.48 billion from the women’s health
divestitures, higher than the previously announced $2.3 billion
expected proceeds.”
Morgan Stanley acted as financial advisor to Teva, Ernst &
Young served as accounting advisor and Goodwin Procter is Teva’s
legal counsel for the transaction.
Rothschild & Co, Royal Bank of Canada, Jefferies LLC and
Barclays acted as financial advisors to CVC Capital Partners for
the transaction. Latham Watkins and Jones Day acted as legal
advisors to CVC Capital Partners.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a
leading global pharmaceutical company that delivers high-quality,
patient-centric healthcare solutions used by approximately 200
million patients in over 60 markets every day. Headquartered in
Israel, Teva is the world’s largest generic medicines producer,
leveraging its portfolio of more than 1,800 molecules to produce a
wide range of generic products in nearly every therapeutic area. In
specialty medicines, Teva has the world-leading innovative
treatment for multiple sclerosis as well as late-stage development
programs for other disorders of the central nervous system,
including movement disorders, migraine, pain and neurodegenerative
conditions, as well as a broad portfolio of respiratory products.
Teva is leveraging its generics and specialty capabilities in order
to seek new ways of addressing unmet patient needs by combining
drug development with devices, services and technologies. Teva's
net revenues in 2016 were $21.9 billion. For more information,
visit www.tevapharm.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, regarding the completion of the Teva's global women's health
divestiture which are based on management’s current beliefs and
expectations and are subject to substantial risks and
uncertainties, both known and unknown, that could cause our future
results, performance or achievements to differ significantly from
that expressed or implied by such forward-looking statements.
Important factors that could cause or contribute to such
differences include risks relating to:
- the potential that the expected
benefits and opportunities related to the divestiture may not be
realized or may take longer to realize than expected;
- litigation in respect of either company
or the divestiture;
- our ability to complete additional
divestitures, including our ability to identify purchasers and
negotiate terms acceptable to us;
- our substantially increased
indebtedness and significantly decreased cash on hand, which may
limit our ability to incur additional indebtedness, engage in
additional transactions or make new investments, and may result in
a downgrade of our credit ratings;
- our business and operations in general,
including: uncertainties relating to the potential success and our
ability to effectively execute our restructuring plan;
uncertainties relating to the potential benefits and success of our
new organizational structure and recent senior management changes;
our ability to develop and commercialize additional pharmaceutical
products; manufacturing or quality control problems, which may
damage our reputation for quality production and require costly
remediation; interruptions in our supply chain; disruptions of our
or third party information technology systems or breaches of our
data security; the restructuring of our manufacturing network,
including potential related labor unrest; the impact of continuing
consolidation of our distributors and customers; and variations in
patent laws that may adversely affect our ability to manufacture
our products; our ability to consummate dispositions on terms
acceptable to us; adverse effects of political or economic
instability, major hostilities or terrorism on our significant
worldwide operations; and our ability to successfully bid for
suitable acquisition targets or licensing opportunities, or to
consummate and integrate acquisitions;
- compliance, regulatory and litigation
matters, including: costs and delays resulting from the extensive
governmental regulation to which we are subject; the effects of
reforms in healthcare regulation and reductions in pharmaceutical
pricing, reimbursement and coverage; potential additional adverse
consequences following our resolution with the U.S. government of
our FCPA investigation; governmental investigations into sales and
marketing practices; potential liability for sales of generic
products prior to a final resolution of outstanding patent
litigation; product liability claims; increased government scrutiny
of our patent settlement agreements; failure to comply with complex
Medicare and Medicaid reporting and payment obligations; and
environmental risks;
- and other factors discussed in our
Annual Report on Form 20-F for the year ended December 31, 2016
(“Annual Report”), including in the section captioned “Risk
Factors.” and in our other filings with the U.S. Securities and
Exchange Commission, which are available at www.sec.gov and
www.tevapharm.com. Forward-looking statements speak only as of the
date on which they are made, and we assume no obligation to update
or revise any forward-looking statements or other information
contained herein, whether as a result of new information, future
events or otherwise. You are cautioned not to put undue reliance on
these forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20180201005087/en/
Teva Pharmaceutical Industries Ltd.IR Contacts:United
StatesKevin C. Mannix, 215-591-8912Ran Meir,
215-591-3033orIsraelTomer Amitai, 972 (3) 926-7656orPR
Contacts:IsraelYonatan Beker, 972 (54) 888-5898orUnited
StatesKaelan Hollon, 202-412-7076Michelle Larkin,
610-786-7335
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