The stock of Teva Pharmaceuticals (TEVA 19.80, +1.30, +7.0%) is up nicely in the early going following a pair of announcements from the company after Monday's close.
The first announcement, which came after Monday's closing bell, featured the news that Teva has entered into an agreement to sell its PARAGARD product to CooperSurgical, a unit of Cooper Cos. (COO 252.77, -0.62, -0.2%), for $1.1 billion in cash. The acquisition price also includes the manufacturing facility in Buffalo, New York, where PARAGARD is produced.
PARAGARD, which is an intrauterine copper contraceptive, generated $168 million in trailing twelve month revenues for Teva, so the divestiture is coming at a nice premium for Teva shareholders.
The sale of the business is in-line with Teva's stated effort to divest non-core businesses. It was noted that Teva is going to pursue other divestiture opportunities related to the remaining assets of its global Women's Health business, which accounted for roughly 2% of fiscal 2016 revenue, and its Oncology and Pain businesses in Europe.
Pending antitrust clearance, the sale of PARAGARD is expected to close before the end of 2017 and the proceeds will be used to repay term loan debt under Teva's Senior Credit Facility.
The second announcement was made today in front of the opening bell and it involved TRISENOX, which is used in the treatment for patients with acute promyelocytic leukemia (APL).
Specifically, Teva said the U.S. FDA accepted for review the company's supplemental New Drug Application (sNDA) for the use of TRISENOX injection in combination with all-trans retinoic acid (ATRA) for induction of remission and consolidation in patients with newly diagnosed low or intermediate risk APL whose APL is characterized by the presence of the t(15;17) tranlocation or PML/RAR-alpha gene expression.
That acceptance is an important step toward expanding the label for TRISENOX. Regulatory action on the matter is expected in the first quarter of 2018.
These announcements have made a busy start to the week for Teva even busier. Prior to Monday's open, Teva announced Kare Schultz will succeed Dr. Yitzhak Pterburg as President and CEO and that its migraine treatment fremanezumab yield positive results in Phase III studies.
Including this morning's gain, TEVA is up 28% from its closing price on Friday.