Israel-based Teva Pharmaceutical has signed a definitive agreement to sell its intrauterine copper contraceptive device Paragard to US-based CooperSurgical for $1.1bn.
Included in Teva’s global Women’s Health business, Paragard is a copper-releasing device designed for placement under the uterus to prevent pregnancy for about ten years.
The device is reported to have generated revenue of about $168m for the trailing 12-month period that ended on 30 June.
In addition to the device, the agreement covers its manufacturing facility located in Buffalo, New York, US.
The move is part of the firm’s efforts to divest the assets of its global Women's Health, Oncology and Pain businesses in Europe.
Through the sale of these businesses and additional assets, the firm intends to obtain a minimum of $2bn in total proceeds.
The company also intends to bolster the central nervous system (CNS) and respiratory therapeutic areas under its Global Specialty Medicines business.
Teva Pharmaceutical interim CEO Dr Yitzhak Peterburg said: “CooperSurgical’s commitment to women's health, fertility and diagnostics, will help to assure that patients in the US continue to benefit from access to Paragard.
“This is an important step towards completing the divestments we have promised our stakeholders.”
Planned to close by the end of this year, the divestiture deal with CooperSurgical is subject to customary conditions and clearances in the US.
Until the end of the transaction, Teva will continue to manufacture and sell the device, while it will also provide support for management of the business to meet the needs of customers and patients.
Image: Teva Pharmaceutical headquarters. Photo: courtesy of Teva Pharmaceutical Industries Ltd.