Teva Announces Completion of Plan B One-Step® Divestiture to Foundation Consumer Healthcare
03 November 2017 - 4:15AM
Business Wire
Teva to receive $675 million cash proceeds to
progress repayment of term loan debt
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20171102006324/en/
Teva Pharmaceutical Industries Ltd.IR Contacts:United
StatesKevin C. Mannix, 215-591-8912Ran Meir,
215-591-3033orIsraelTomer Amitai, 972 (3) 926-7656orPR
Contacts:IsraelIris Beck Codner, 972 (3) 926-7208orUnited
StatesDenise Bradley, 215-591-8974Michelle Larkin,
610-786-7335
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