Teva Files Prospectus for Planned $2B Sale of API Business

On July 6, according to foreign media Endpoints, Teva is considering selling its active pharmaceutical ingredients (API) business and plans to undergo a broader strategic shift. Bloomberg cited sources familiar with the matter stating that Teva has hired advisors to explore whether there are buyers willing to acquire the unit for approximately $2 billion.

Teva has a strong API business supply chain, with approximately 4,000 employees across 14 production sites globally, manufacturing around 350 products.

A spokesperson for Teva once said in an email to Endpoints: "We believe that Teva's API business is a division with strong growth potential. As part of our ongoing business, we will continue to regularly review our operations and potential opportunities around them."

Teva's API business for third parties generated $132 million in revenue in the first quarter of 2023, a 27% decrease year-over-year; in 2022, this business generated $675 million in revenue, a 9% decrease year-over-year. In May 2023, Teva announced a "pivot to growth" strategy and is considering spinning off its API business to better capture the approximately 6% annual growth in the API market.

Richard Francis took over as CEO of Teva in January 2023. Currently,Francis is leading Teva in business reform, planning to tilt more towards R&D in the coming years.Teva stated that this would include cutting some low-margin generic drug businesses that are already supplied by multiple other manufacturers.

Reference Source:

Teva reportedly considering sale of API unit – Endpoints News (endpts.com)

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