Teva Pharmaceuticals is exploring options for selling the plant in in Ramat Hovav

Teva Pharmaceuticals is exploring options for its active pharmaceutical ingredients business, including the possibility of selling them, people familiar with the situation said, at a time when mergers and acquisitions of assets in the health sector continue to show resilience despite the slowdown in the global mergers and acquisitions market.
Israel's Teva is working with its advisers to test the level of interest from potential buyers in the production activity of the active raw materials (TAPI) at the Teva plant in Ramat Hovav, the people said. The transaction may reflect a value of abe plant out 2 billion dollars for the businesses, they added.
Teva's active raw materials business includes over 400 active pharmaceutical ingredients (API) used to manufacture drugs to treat a variety of medical problems, from headaches to diabetes. The division's workforce includes more than 5,000 people.
The contacts are still in the early stages and it is possible that Teva will ultimately decide not to sell the operation, said the people, who asked to remain anonymous because the information is confidential.
"As part of our ongoing business conduct, we continue to regularly review our business," said a spokesperson for Teva in an e-mail message. Teva sees its business in the field of active pharmaceutical ingredients as solid and as something that can contribute to the company's growth strategy, the spokesperson added.
Teva's new CEO, Richard Francis, announced in May a plan to reduce production of certain generic drugs due to low profitability, and instead focus on more innovative products.
Teva, one of the world's largest generic drug manufacturers, is facing high levels of debt and weak stock performance. The company's stock fell by 16% in Tel Aviv this year, to a level that reflects the company's market value of NIS 31.1 billion.
A sale of its active pharmaceutical ingredients business would join about $170 billion in deals involving health and pharmaceutical companies this year, according to data compiled by Bloomberg. This is an amount more than a fifth higher than its level in 2022 at this stage of the year, and stands in contrast to the sharp drop in mergers and acquisitions activity recorded in most other major sectors.
​