On September 11, 2017, Teva Pharmaceuticals (NYSE: TEVA) announced that it had entered into an agreement to sell PARAGARD to CooperSurgical. The product within the company’s global Women’s Health Business will fetch $1.1 billion dollars in a cash transaction. During the trailing twelve months ending on June 30, 2017, PARAGARD generated revenue of roughly $168 million.
The transaction also includes the company’s manufacturing facility in Buffalo, New York. This facility is exclusively utilized for the manufacturing of PARAGARD. Teva also confirmed that it continues to pursue additional divestiture opportunities, including selling the remaining assets of its Women’s Health Business and its Oncology and Pain businesses in Europe.
Teva anticipates that it will be able to generate at least $2 billion in total proceeds from the sale of these businesses. Additional asset sales are expected to be executed by the year-end of 2017. By divesting PARAGARD and with the planned sale of other Women’s Health products and the Oncology and Pain businesses, Teva intends to place its focus on CNS and Respiratory products. Teva already maintains a strong pipeline and profile in these sectors and it will continue investing to create long-term value.
Teva is committed to working with CooperSurgical to ensure the smooth transition of PARAGARD is as smooth as possible. Until the transaction is completed, Teva will continue to produce and sell PARAGARD in the United States.