Teva is not having a good financial year thus far. Suffering considerable financial losses, reaching $6 billion in recent months. The company is now selling off its women’s health unit in order to recover and reduce its debt of over $30 billion.
The company’s negative position follows on from its acquisition of Allergan Plc for over $40 billion, which has contributed to Teva’s escalating debt.
Teva’s decision and subsequent statement surrounding the sell has caused a bidding frenzy. Despite the company’s struggling forecasts and remaining rudderless without a permanent CEO at the helm, women’s health has grown in considerable value within the last five years within the healthcare industry.
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It is unknown whether Teva will sell the business as a whole, or sell its divisions separately, as the company is also looking at selling its oncology, Medis and respiratory treatments, making this a triple blow to the company’s continuing operations.
At present, Teva is one of the largest creators of generic and branded drugs – however, sales have decreased considerably.
Interested bidders include Church & Dwight, Cooper Companies, India’s Intas Pharmaceuticals and Astorg Partners, highlighting its international focus and desire for pharmaceutical companies to further expand their portfolios. Final bids are to be submitted at the end of this week and could reach over $2 billion.
Bank of America Corp are set to support Teva in the sale.