After the company divested its Paragard intrauterine device assets for $1.1 billion in cash last week, Teva Pharmaceuticals (NYSE:TEVA) announced today that it plans to sell off the rest of its global women’s health biz.
Combined with proceeds from its Paragard deal, the sale of Teva’s global women’s health assets will total $2.48 billion, the company reported. Teva said it plans to use the funds to repay term loan debt.
According to the deal, CVC Capital Partners Fund VI is set to acquire a portfolio of products including Teva’s Ovaleap, Zoely, Seasonique, Colpotrophine, Actonel and others, for $703 million in cash.
Teva also inked an agreement with Foundation Consumer Healthcare for $675 million in cash. According to that deal, Foundation Consumer Healthcare is slated to acquire Teva’s Plan B One-Step and its brands of emergency contraception, including Take Action and Next Choice One Dose.
“Today’s announcement, coupled with the recent announcement of the sale of Paragard for $1.1 billion, demonstrate Teva’s commitment to delivering on our promise to generate net proceeds of at least $2 billion from the divestiture of non-core assets,” interim CEO Yitzhak Peterburg said in prepared remarks. “With these initial divestitures we have exceeded expectations, leveraging the tremendous value we have built within Teva’s specialty business.”
“Teva is extremely pleased to enter into these agreements with CVC Capital Partners and Foundation Consumer Healthcare, which progress our ability to repay term loan debt while also providing a clear path forward for these important products to continue to be available to women throughout the world.”
Teva said it expects the transactions to close before the end of the year.
The pharmaceutical company plans to divest of its oncology and pain businesses in Europe, narrowing its focus on CNS and respiratory conditions as its therapeutic areas of focus.