Teva (NYSE:TEVA) plans to divest its active-pharmaceutical ingredient (API) business as part of its Pivot to Growth strategy to focus on its core business strengths.
“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. 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,” the company said.
Teva API is a stand-alone business unit of Teva Pharmaceutical (TEVA) specializing in development and manufacturing of small-molecule API. The unit employs approximately 4,300 people worldwide and has a portfolio of 350 products serving a diverse range of both generic and innovative therapeutic areas.
The intended divestiture is expected 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.
Shares of Teva Pharmaceutical (TEVA) gained 2.3% premarket on Wednesday
