Teva Pharmaceutical Industries Ltd (ADR) (TEVA) To Reduce Its Term Loan Debt With PARAGARD Asset Sale


Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) announced it has completed the divestiture of PARAGARD® (intrauterine copper contraceptive) to CooperSurgical in a $1.1 billion cash transaction. This transaction includes Teva’s manufacturing facility in Buffalo, NY, which produces PARAGARD® exclusively.

“With completion of the sale of PARAGARD®, Teva demonstrates strong execution of our strategic divestiture plan,” stated Dr. Yitzhak Peterburg, outgoing President and CEO. ”We now have an infusion of $1.1 billion to progress the repayment of term loan debt and are on track to deliver on our promise to generate net proceeds of at least $2 billion from the divestiture of non-core assets. We are very pleased to have completed this sale to CooperSurgical which will help to not only allow for greater focus within Teva’s Global Specialty Medicines business but also assure that patients in the U.S. continue to benefit from access to this important contraceptive product.”

Teva continues to progress and actively pursue additional divestiture opportunities, including the previously announced agreements for the sale of Plan B One-Step® and the remaining assets of its global Women’s Health business. Teva expects to generate at least $2 billion in total proceeds from the sale of these businesses, as well as additional asset sales to be executed by year end 2017.

Shares of Teva Pharmaceutical closed today at $14.02, up $0.22 or 1.59%. TEVA has a 1-year high of $44.13 and a 1-year low of $13.26. The stock’s 50-day moving average is $16.13 and its 200-day moving average is $24.54.

On the ratings front, TEVA stock has been the subject of a number of recent research reports. In a report issued on October 30, RBC analyst Randall Stanicky reiterated a Sell rating on TEVA, with a price target of $13, which represents a slight downside potential from current levels. Separately, on the same day, Mizuho’s Irina Rivkind Koffler reiterated a Hold rating on the stock and has a price target of $15.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Randall Stanicky and Irina Rivkind Koffler have a yearly average loss of -15.4% and a return of 13.5% respectively. Stanicky has a success rate of 23% and is ranked #4647 out of 4699 analysts, while Koffler has a success rate of 50% and is ranked #292.

Sentiment on the street is mostly neutral on TEVA stock. Out of 20 analysts who cover the stock, 14 suggest a Hold rating , 3 suggest a Sell and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $21.12, which implies an upside of 56% from current levels.

Teva is a global pharmaceutical company, which provides patient-centric healthcare solutions. It operates through two segments: Generic Medicines and Specialty Medicines. The Generic Medicines segment includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. The Specialty Medicine segment engages in the provision of core therapeutic areas of central nervous system medicines.