Teva finishes women's health sale with deals worth $1.38B

Teva offloaded certain women's health brands for $1.38 billion on Monday.

Teva, which has been rumored to be looking to offload its women's health unit since April, has finally gotten that done. After selling one piece of the biz for more than $1 billion a week ago, the beleaguered drugmaker today unveiled terms to sell the remaining products for $1.38 billion, which it can use to pay down debt.  

Teva announced a sale of contraception, fertility, menopause and osteoporosis products to CVC Capital Partners Fund VI for $703 million Monday morning. The products generated $258 million in sales last year. Simultaneously, Teva sold emergency contraception brands, which brought in $140 million last year, to Foundation Consumer Healthcare for $675 million. The deals are expected to close yet this year.

The sales come just one week after Teva offloaded its intrauterine copper contraceptive Paragard to CooperSurgical for $1.1 billion. Together, the agreements represent women's health divestitures totaling $2.48 billion. Teva picked up the women's health unit from Merck KGaA for €265 million in 2010.

It's all part of an effort to refocus and pay down debt for a drugmaker that has had a tough year. After picking up Allergan's generics offerings for $40.5 billion back in 2015, Teva has suffered from negative pricing dynamics in the field and various other challenges. It recently hired a new CEO and announced a major round of layoffs—7,000 jobs—in an attempt to improve its fortunes.

Teva is still looking for a buyer for its European oncology and pain assets, another business slated for a sale.

Teva began exploring the women's health sale following the departure of former CEO Erez Vigodman earlier this year, according to a Bloomberg report at the time. The drugmaker then kicked off a CEO search that ultimately landed on Lundbeck CEO Kåre Schultz. Schultz will be tasked with engineering a turnaround for a drugmaker that has seen its share price fall by 64% in one year.