Israel-based Teva, whose pledge to unload manufacturing plants in its home country sparked strikes, is reportedly close to selling a site in Kiryat Shmona.
The possible buyer is competitor B. Braun Melsungen, a source told Calcalist. Meir Ben Elul, head of the plant’s union committee, also told the Israeli publication that a deal for the plant, which employees about 200, is “very close” to being completed.
The facility, which manufactures plastic products for the pharmaceutical industry, competes with B. Braun. It is said to be worth up to $100 million.
Teva declined to comment.
Workers had walked off the lines at Israeli plants late last year after new CEO Kåre Schultz said that Teva would cut about 14,000 positions worldwide, with about 1,750 cuts coming from Israel, as the financially distressed generics company worked to cut costs and fix big problems. Schultz has said Teva will probably close 20 to 25 manufacturing sites in the first two years of the reorganization as it trims about $3 billion in costs, and would lose 40 sites longer term.
In August, Rekah Pharmaceutical Industry announced it has struck a deal to take over a Teva IV bags plant in Ashdod with 175 workers.
While the CEO has made significant strides in cutting costs, the drugmaker still faces significant challenges. A major sell-off of its shares came last month after an analyst raised questions about its continuing loss of generics market share. Investors also were spooked by an FDA approval for Eli Lilly CGRP migraine drug Emgality, which came right on the heels of an approval for Teva’s own closely watched CGRP contender, Ajovy. Both drugs will go up against Amgen and Novartis’ recently launched Aimovig, and analysts including Wells Fargo’s David Maris figure the fierce competition will trigger major discounting.