AUSTRALIA’S pharmaceutical giant Teva Pharmaceutical Industries Ltd (TPIL) is set to be sold off, but a big debate is likely to follow about how the deal will be paid for.
Key points:Teva will be sold by the Australian Government to a consortium of Australian and European drugmakers.
Teva is one of Australia’s most valuable companies, with revenues of $6.5 billion last yearThe deal is set for completion by the end of 2018Teva has been in a state of crisis ever since the Australian government announced plans to sell its assets in the US.
Its shares are down around 5 per cent over the past year and it is expected to be auctioned off at a valuation of around $6 billion.
It has been a slow sell.
Last week, Teva posted a profit of $1.2 billion in the year to March, down from a profit that stood at $639 million in the same period a year ago.
But that was despite the company’s $1 billion loss in the previous three months, as the company struggled to cope with the Zika virus outbreak.
Teva has a long and complex history, dating back to the 1960s when it was the country’s only national pharmaceutical company.
In 1974, it acquired the Teva brand name for $6 million.
In 1990, it became a fully integrated pharmaceutical company under the Tevis brand, which it retained until 2003.
But in 2011, it announced plans for a shake-up of its business model, which would see it merge with a US company, AstraZeneca, to create a new company called Teva Bioscience.
The deal with Astra was completed in 2014.
At the time, the company was the world’s third largest pharmaceutical company, behind Pfizer and Pfizer-owned Bristol-Myers Squibb.
The merged company had a net profit of more than $20 billion for the last three years, according to the latest data from the US company’s filings.
Tevas current market value is estimated at $9 billion.
But the company is not the only pharmaceutical company to struggle over the last few years.
The Australian Government last year sold off its entire portfolio of drugmakers including Pfizer, AstroZeneca and Teva, but it has not announced the terms of the deal yet.
The Government is expected on Wednesday to announce how the proceeds will be used.
It is understood the sale will involve the sale of some of Teva’s intellectual property, which is believed to include research and development and manufacturing, as well as the ability to license intellectual property from other drugmakers for use in research and clinical trials.
“Teva was an industry leader in providing healthcare services, but over the years, its business strategy has changed, which has affected the value of its intellectual property,” a Teva spokesperson said in a statement.
“We have a long history of delivering value for our stakeholders, and the sale is in the best interests of all stakeholders.”
This sale will not result in any disruption to Teva or its business.
The Australian government is committed to ensuring that the Government and the pharmaceutical industry is a leading global provider of medicines, including through the sale and financing of assets.
But Teva has struggled to sustain its business over the decades and is facing challenges with Zika outbreaks, including shortages of medicine.
“The sale is the first step towards ensuring the continuation of Tevas success, and is a necessary step in ensuring Teva remains a successful company that supports the lives of Australians,” the spokesperson said.