Teva Announces it will Divest API Business as Part of ‘Pivot to Growth’ Strategy

Global pharmaceutical company, Teva Pharmaceutical, has announced plans to divest its API business, aligning with its 'Pivot to Growth' strategy. This move aims to reduce complexity and enhance profitability, whilst enabling them to focus on streamlining operations and focusing on core capabilities in generics, specialty medicines, and biopharmaceuticals. Teva expects the intended divestiture to be completed in the first half of 2025, subject to agreement on transaction terms, which will maximise an array of opportunities in the $85bn global API market.

Teva announced today its intention to divest its active-pharmaceutical ingredient (API) business, or "TAPI". TAPI is a global leader in the small-molecule API industry, with approximately 4,300 employees worldwide.

The intent to divest “TAPI” will allow Teva to maximize current and potential revenue streams, focusing on capital reallocation towards growth and innovation, and to better serve patients. The intended divestiture is expected to create additional value for Teva’s shareholders and other stakeholders by allowing Teva to better address distinct, growing markets with Teva’s leading product offerings. It will also allow the divested company to pursue new growth strategies, enabling it to maximize an array of opportunities in the $85 billion global API market.

Richard Francis, Teva's President and CEO said: "The divestiture of TAPI will play an important role in the execution of our Pivot to Growth strategy in this new era for Teva, as it will allow us to increase the focus on our core business, continue to invest in our growth drivers, accelerate our innovative and biosimilar pipeline, and position our generics portfolio and pipeline to drive growth for the future."

R. Ananth, CEO of TAPI said: "Our goal, operating outside of Teva, is to enable TAPI to maximize its potential for growth, capture more opportunities with third-party customers, leverage its technology, expand its capabilities and continue to support generics players and innovators, including Teva, worldwide."

Teva expects the intended divestiture to be completed in the first half of 2025, subject to reaching a satisfactory agreement on transaction terms with a prospective purchaser, the successful satisfaction of closing conditions, and the approval of an agreed transaction by Teva’s Board of Directors. However, there can be no assurance regarding the ultimate timing or structure of the potential divestiture or that a divestiture will be agreed or completed at all.

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