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Teva planning sale of Medis
Posted on Wednesday, 09 August 2017 14:37
Israeli pharmaceuticals player Teva is intending to jettison its Icelandic Medis unit, which specialises in generic pharmaceuticals, according to Bloomberg.
The news provider cited a representative of the vendor as confirming that a disposal of the division is currently under consideration.
It also quoted from an emailed statement, in which the firm said it was evaluating ways of streamlining its activities while focusing its business.
Bloomberg cited people with knowledge of the matter, who did not wish to be identified as the matter is private, as saying Teva plans to increase the number of asset sales it conducts in a bid to lower its debt level and maintain its credit rating.
The sources stated that if Teva does opt to divest Medis, a deal could be worth somewhere between USD 500.00 million and USD 1.00 billion, depending on exactly which assets are jettisoned.
They added that other operations could also go on the block and identified respiratory treatment activities as being among those which may also be sold, noting that these could bring in between USD 500.00 million and USD 2.00 billion.
According to Bloomberg’s sources, other pharmaceutical companies and private equity investors could be among prospective suitors.
However, the people cautioned that Teva has yet to make a final decision on whether to go ahead with the asset sales and the process is at an early stage.
Medis was founded in 1985 and provides generic pharmaceuticals, primarily in the form of tablets, capsules and injections.
Its products span the specialist oncology field, among others, and the firm has a presence in multiple countries throughout Europe, as well as in Singapore, Brazil and Australia.
Teva acquired Medis as part of its purchase of Actavis Generics, for which it paid USD 38.83 billion in August 2016.
This is not its first asset sale of late; in November 2016 it agreed to divest select activities in France to Arrow Generiques for an undisclosed consideration.
Back in April Bloomberg cited sources close to Teva as saying the firm was looking for a buyer for its women’s health division and hoped to generate around USD 2.00 billion from the sale.
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