Teva to offload API business as it concentrates on lead drug products

Teva, a prominent pharmaceutical company, is focusing on strategic moves to strengthen its business, including the decision to offload its Active Pharmaceutical Ingredients (API) business as part of its effort to concentrate on lead drug products. The company recently announced the appointment of Dr. R. Ananthanarayanan as CEO of Teva API, signifying a dedicated focus on the API unit as a stand-alone business.

The move reflects Teva's efforts to improve efficiency and cost-saving measures. The company has been undergoing a multi-year restructuring plan, which has included closing facilities around the globe and cutting jobs, with the aim of growing its business with key products such as Uzedy, Ajovy, and a stable generics business.

Teva has also been dealing with the loss of exclusivity for its multiple sclerosis medicine, Copaxone, in 2015, and is looking to balance its portfolio by shedding non-core assets and investing in products with growth potential. The company raises its revenue guidance for 2023 for the second time this year while keeping its Earnings per Share (EPS) range intact, reflecting the sustainable growth from key products.

In a separate development prior to offloading its API business, Teva and Takeda's joint venture in Japan offloaded most of its generics portfolio and a manufacturing site to Nichi-Iko Pharmaceutical. This move reflects the companies' shift to focus on specialty drugs and targeted generics.

In summary, Teva's decision to separate its API unit as a stand-alone business is part of a larger strategic effort to optimize operations for efficiency while also lowering the company's debt. It aligns with Teva's focus on stabilizing its business and growing its presence in lead drug products and specialty medicines, achieved through portfolio reshaping and restructuring.