Pharmaceutical company Teva completed $ 2.1 billion in bond raising due to high demand

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by Ifi Reporter Category:Health Nov 19, 2019

High demand for Teva's bond raising. The pharmaceutical company completed $ 2.1 billion in bond raising, compared to $ 1.5 billion originally planned.
The company enjoyed high demand in the bond markets for low-rated debt that carries a relatively high interest rate in the environment of falling interest rates. Teva's $ 1 billion dollar bond will carry 7.125% and the euro denominated $ 1.1 billion will carry 6% Both series were aimed at cheaper debt recycling that was raised with the acquisition of Actavis in 2016 when Teva had a higher rating.
Teva CEO Kar Schultz said, "Upon the completion of this transaction, and at the same time as the purchase offer and early repayment of our debentures, we achieved a reconciliation of the expected repayment of debt in the coming years for our operational performance, while continuing to focus on achieving our business goals and long-term goals."
The current debt raising is supposed to solve the repayment load expected for nature in 2021, so it needs to repay more than $ 4 billion. By 2020, it has to pay about $ 2 billion and currently has only $ 1.2 billion in the fund. This is a debt remaining from the acquisition of Actavis for close to $ 40 billion. Recruitment adds certainty about Teva's ability to meet the debt settlement schedule.
Teva ended the third quarter with a net debt of $ 25.7 billion, a significant reduction from $ 34 billion two years ago. However, the debt that remains to be repaid is still huge, especially in view of the continuing decline in income and profitability, which also impacts the cash flow.

Teva had good news this week. it's factory in Kfar Saba, which was responsible for part of the company's flagship drug, Copaxone, received an important message over the weekend: The plant will take part in the production of AJOVY, a migraine-based biological source drug that hopes for its future drug, which may partially compensate for it. The decline in Copaxone sales. About a year ago, the FDA approved the drug for the treatment of migraine prophylaxis in adult patients.
Last week, the US Food and Drug Administration (FDA) approved the plant to meet the stringent standards required to take part in drug production. The plant's part will be in the process of filling the syringes with sterile conditions designed to achieve the medical effect on migraine sufferers.
The drug AJOVY is supposed to be Teva's next flagship drug, which will make up for the decline in sales of Copaxone for multiple sclerosis. Over the past two years, since its patent expired, copaxone sales have plunged rapidly and currently stand at only $ 1.2 billion. Accordingly, the drug production at the Teva Neot Hovav plant was reduced.
The plant will also carry out quality control processes for the biological material and the syringe, using a state-of-the-art biological laboratory set up, and carry out the packaging processes for a drug intended for export to the US market. In the meantime, it became clear that the Ministry of Health has granted Teva a drug license in Israel, and Teva is working to incorporate it into the drug basket.
The decline in Copaxone sales as a result of the patent expiration and the closure of Teva's exports of tablets in Jerusalem, for the first time, resulted in a 40% drop in drug exports from Israel. As a result, Teva, which was responsible for most of the drug exports, emerged from the top of Israel's largest exporters list.
The AJOVY drug is given once a month, or three months, and is supposed to inhibit a protein responsible for hypersensitivity to migraine. According to Teva CEO Car Schulz, AJOVY is expected to reach $ 1 billion a year in sales in the future. Teva claims that migraine is the world's third largest disease in the world. More than 36 million Americans suffer from migraine, and around the world there are about a billion people suffering from it.
The drug sales growth rate, as reported in the third quarter of 2019, was below expectations: in the third quarter, sales totaled $ 25 million, up from $ 23 million in the previous quarter. The drug is facing two competing drugs in the US market, costing $ 575 a month.

 

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