The world’s largest generic drug maker, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA), is looking to sell its Medis business branch in order to help cut debts.
After a poor second quarter results, which resulted in shares plummeting the past week, Teva is preparing to cut its debts down. Teva acquired Medis last year in a deal with Actavis.
"Teva is looking at every opportunity to focus our business and streamline operations, processes and structure," Teva said in an emailed statement to Reuters. "As part of this process, a decision has been made to initiate the potential divestiture for our Medis business.”
Bloomberg News said that Medis would be valued at anywhere from $500 million to $1 billion. It also said that Teva may sell its respiratory treatment unit for as much as $2 billion.
Teva is also planning on selling its women's health and European oncology and pain businesses and said last Thursday that it expected to announce an agreement on a sale soon. After selling those branches of the company, the company can make back roughly $2 billion, which would all go right back to help covering the huge financial debt, interim CEO Yitzhak Peterburg noted.
Teva is built up with more $32 billion in debt mainly due to its purchase of Actavis branch Medis. Analysts say that Teva overpaid in the deal and ultimately led to former CEO Erez Vigodman to resign back in February, according to Reuters.
Since last Wednesday, shares of Teva have plummeted over 40 percent, marking the lowest shares have ever been.
Teva has been having a very poor fiscal year primarily due to the acquisition last year, in order to come back from this financial crisis, it’s a clear sign that Teva is trying to rush and sell its assets and other divisions of the company in order to help mitigate the damages as much as possible.