(Reuters) -Teva Pharmaceutical Industries will divest its active pharmaceutical ingredient (API) unit to focus on its core business, the world's largest generic drugs maker said on Wednesday.
The API unit, which brought in revenue of $1.05 billion in 2022, makes pharmaceutical ingredients that are used in both generic and branded medicines, and serves over 1,000 clients globally.
U.S.-listed shares of the Israel-based drugmaker rose 2.3% in premarket trading. Teva is expected to report earnings later on Wednesday.
Teva has been focused on cutting its $35 billion of debt as it fought a spate of lawsuits alleging it helped fuel the U.S. opioid epidemic, and is recovering from the loss of exclusivity for its multiple sclerosis drug Copaxone.
The company has been betting on a trio of branded drugs - Huntington's disease treatment Austedo, migraine product Ajovy and schizophrenia drug Uzedy - to drive growth. It also has a number of biosimilar therapies in its pipeline.
The company expects the API divestiture to be completed in the first half of 2025.