Teva Announces Plan to Sell its Active-Pharmaceutical Ingredient (API) Business, ‘TAPI,’ as a Strategic Move Towards Growth
Teva disclosed today its decision to divest its active-pharmaceutical ingredient (API) business, known as “TAPI.” A prominent player in the global small-molecule API industry, TAPI employs around 4,300 professionals across the globe.
The proposed divestment of TAPI is a strategic step for Teva, aiming to optimize current and future revenue streams. This move will allow Teva to redirect capital towards growth initiatives and innovation, enhancing its ability to cater to the evolving needs of patients. Anticipated to generate added value for Teva’s shareholders and stakeholders, the divestiture enables Teva to focus on core business areas with leading product offerings, addressing distinct and expanding markets. Simultaneously, the divested company will have the flexibility to explore new growth strategies and tap into opportunities within the $85 billion global API market.
Richard Francis, Teva’s President and CEO, emphasized the significance of TAPI’s divestiture in aligning with Teva’s Pivot to Growth strategy. This strategic shift positions Teva to intensify its focus on core operations, invest in growth drivers, expedite its innovative and biosimilar pipeline, and strategically position its generics portfolio for future growth.
R. Ananth, CEO of TAPI, outlined the goals of TAPI post-divestment, emphasizing the intention to maximize growth potential, engage third-party customers, leverage technology, broaden capabilities, and continue to support generics players and innovators, including Teva, on a global scale.
Teva anticipates completing the intended divestiture in the first half of 2025, contingent upon reaching agreeable transaction terms with a potential buyer, fulfilling closing conditions, and obtaining approval from Teva’s Board of Directors. However, there is no certainty regarding the precise timing, structure, or ultimate completion of the proposed divestiture.
