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Cooper Companies To Buy PARAGARD IUD From Teva For $1.1 Bln In Cash

The Cooper Companies, Inc. (COO), a medical device company, announced Monday that it has entered into a definitive asset purchase agreement with Teva Pharmaceutical Industries Ltd. (TEVA) to acquire the global rights and business of its PARAGARD Intrauterine Device or IUD in a $1.1 billion cash transaction.

The boards of directors of both Cooper and Teva have unanimously approved the transaction. The closing of the deal is expected to occur prior to calendar year-end 2017, subject to the satisfaction of customary closing conditions including antitrust clearance.

PARAGARD is a copper-releasing device that is placed in the uterus to prevent pregnancy for up to 10 years. PARAGARD is currently sold only in the U.S. and had revenues of approximately $168 million for the trailing twelve-month period ending June 30, 2017.

Excluding acquisition and integration related expenses and deal-related amortization, the transaction is expected to be accretive to Cooper's gross and operating margins, and approximately $0.70 to $0.75 accretive to earnings per share in year one.

The acquired business includes Teva's manufacturing facility in Buffalo, NY, which exclusively produces the PARAGARD IUD.

Until the transaction is completed, Teva will continue to manufacture and sell PARAGARD in the U.S. in the normal course, providing full support to manage the business and meet the needs of customers and patients.

Cooper estimates the U.S. IUD market is approximately $1 billion with expected growth in the mid-single digits. According to the firm, approximately 16% of the U.S. market is believed to be non-hormonal IUDs with PARAGARD being the only approved product in this space.

Robert Weiss, Cooper's president and chief executive officer said, "CooperSurgical will now offer the only IUD on the U.S. market that is hormone-free, long-lasting, and reversible. This is also a perfect strategic fit as it leverages CooperSurgical's long-standing, strong relationships with gynecologists."

In a statement, Teva said it continues to actively pursue additional divestiture opportunities, including the sale of the remaining assets of its global Women's Health business, as well as its Oncology and Pain businesses in Europe. Teva continues to expect to generate at least $2 billion in total proceeds from the sale of these businesses, as well as additional asset sales to be executed by year end 2017.

With the divestiture of PARAGARD, and planned divestiture of other global Women's Health products and the Oncology and Pain business in Europe, Teva is reinforcing its strategic focus on CNS and Respiratory as its core global therapeutic areas of focus within Global Specialty Medicines.

In these areas Teva maintains a strong pipeline and portfolio globally, and will continue to invest in creating long term value.

by RTTNews Staff Writer

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