Company takes first step in planned divestment of non-core assets
JERUSALEM--(BUSINESS WIRE)--Sep. 11, 2017--
Teva Pharmaceutical Industries Ltd., (NYSE and TASE: TEVA) today
announced it has entered into a definitive agreement under which
CooperSurgical will acquire PARAGARD® (intrauterine copper
contraceptive), a product within its global Women’s Health business, in
a $1.1 billion cash transaction. PARAGARD® had revenues of
approximately $168 million for the trailing twelve month period ending
June 30, 2017. This transaction includes Teva’s manufacturing facility
in Buffalo, NY, which produces PARAGARD® exclusively.
Teva continues to actively pursue additional divestiture opportunities,
including the sale of the remaining assets of its global Women's Health
business, as well as its Oncology and Pain businesses in Europe. Teva
continues to expect to generate at least $2 billion in total proceeds
from the sale of these businesses, as well as additional asset sales to
be executed by year end 2017.
“CooperSurgical’s commitment to women's health, fertility and
diagnostics, will help to assure that patients in the U.S. continue to
benefit from access to PARAGARD®,” stated Dr. Yitzhak
Peterburg, Interim CEO. “This is an important step towards completing
the divestments we have promised our stakeholders. Teva will use the
proceeds from the sale to repay term loan debt under its Senior Credit
Facility.”
Peterburg continued, “Today’s announcement emphasizes our commitment to
divest non-core businesses to ensure that Teva is even more focused and
efficient in this rapidly changing and highly-competitive environment.”
With the divestiture of PARAGARD®, and planned divestiture of
other global Women’s Health products and the Oncology and Pain business
in Europe, Teva is reinforcing its strategic focus on CNS and
Respiratory as its core global therapeutic areas of focus within Global
Specialty Medicines. In these areas Teva maintains a strong pipeline and
portfolio globally, and will continue to invest in creating long term
value.
Teva is committed to working closely with CooperSurgical to ensure a
smooth transition of PARAGARD®. Completion of the transaction
is subject to customary conditions, including antitrust clearance in the
U.S. The transaction is expected to close before the end of 2017.
Until the transaction is completed, Teva will continue to manufacture
and sell PARAGARD® in the U.S. in the normal course,
providing full support to manage the business and meet the needs of
customers and patients.
Morgan Stanley and Ernst & Young acted as advisor to Teva and Goodwin
Procter as Teva’s legal counsel for this transaction.
What is PARAGARD (intrauterine copper contraceptive)?
PARAGARD is a copper-releasing device that is placed in the uterus to
prevent pregnancy for up to 10 years.
IMPORTANT SAFETY INFORMATION
Do not use PARAGARD if you have a pelvic infection, get infections
easily or have certain cancers. Less than 1% of users get a serious
infection called pelvic inflammatory disease. If you have persistent
pelvic or stomach pain, or if PARAGARD comes out, tell your healthcare
professional. If it comes out, use back-up birth control. Occasionally,
PARAGARD may attach to or in rare cases may go through the uterine wall
and may also cause other problems. In some cases, surgical removal may
be necessary. Although uncommon, pregnancy while using PARAGARD can be
life threatening and may result in loss of pregnancy or fertility.
Bleeding or spotting may increase at first but should decrease in 2 to 3
months. PARAGARD does not protect against HIV/AIDS or sexually
transmitted diseases (STDs).
Available by prescription only.
You are encouraged to report negative side effects of prescription drugs
to the FDA at www.fda.gov/medwatch
or call 1-800-FDA-1088.
For important risk and use information about PARAGARD, please see the full
Prescribing Information.
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 Sale of PARAGARD® (intrauterine copper contraceptive)
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;
-
risks related to the satisfaction of the conditions to closing the
divestment (including the failure to obtain necessary regulatory
approvals in the anticipated timeframe or at all), including the
possibility that the disposition does not close;
-
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/20170911006223/en/
Source: Teva Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd.
IR Contacts:
Kevin C.
Mannix, United States, 215-591-8912
Ran Meir, United
States, 215-591-3033
Tomer Amitai, Israel, 972 (3) 926-7656
or
PR
Contacts:
Iris Beck Codner, Israel, 972 (3) 926-7208
Denise
Bradley, United States, 215-591-8974
Michelle Larkin, United
States, 610-786-7335