Teva to receive $675 million cash proceeds to progress repayment of
term loan debt
JERUSALEM--(BUSINESS WIRE)--Nov. 2, 2017--
Teva Pharmaceutical Industries Ltd., (NYSE and TASE: TEVA) today
announced it has completed the sale of Plan B One-Step® and
Teva’s value brands of emergency contraception to Foundation Consumer
Healthcare in a $675 million cash transaction.
“Today’s announcement, coupled with the recent completion of the sale of
PARAGARD®, exhibits Teva’s commitment to divest non-core
businesses to ensure that we are even more focused and efficient in this
rapidly changing and highly-competitive environment,” stated Michael
McClellan, interim CFO of Teva. “Teva is extremely pleased to complete
the sale of Plan B One-Step® and value brands of emergency
contraception, which brings a significant influx of cash into the
organization to further progress our ability to repay term loan debt
while also providing a clear path forward for these important emergency
contraception products to continue to be available.”
Teva continues to progress and actively pursue additional divestiture
opportunities, including the previously announced agreement with CVC
Capital Partners for the sale of the remaining assets of its global
Women's Health business. Teva expects to generate at least $2.3 billion
in total proceeds from the sale of these businesses, as well as
additional asset sales to be executed by year end 2017.
Morgan Stanley acted as financial advisor to Teva, Ernst & Young served
as accounting advisor and Goodwin Procter is Teva’s legal counsel for
this transaction.
Foundation Consumer Healthcare is owned by affiliates of Juggernaut
Capital Partners and Kelso & Company. Jefferies LLC, Sawaya Segalas &
Co., LLC and Barclays acted as financial advisors to Foundation Consumer
Healthcare and Robinson Bradshaw are Foundation Consumer Healthcare’s
legal counsel for the transaction. Skadden, Arps, Slate, Meagher & Flom
LLP acted as legal adviser to Kelso & Company.
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 Plan B One-Step® 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 disposition may not be realized or may take longer to realize
than expected;
-
litigation in respect of either company or the disposition;
-
our ability to complete additional dispositions, 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 our 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
failure to recruit or retain key personnel, including those who joined
us as part of the Actavis Generics acquisition; the restructuring of
our manufacturing network, including potential related labor unrest;
the impact of continuing consolidation of our distributors and
customers; 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171102006324/en/
Source: Teva Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd.
IR Contacts:
United States
Kevin
C. Mannix, 215-591-8912
Ran Meir, 215-591-3033
or
Israel
Tomer
Amitai, 972 (3) 926-7656
or
PR Contacts:
Israel
Iris
Beck Codner, 972 (3) 926-7208
or
United States
Denise
Bradley, 215-591-8974
Michelle Larkin, 610-786-7335