Teva Pharma strikes $1.1 B deal for Paragard

Teva Pharmaceutical Industries has agreed to sell its contraceptive brand Paragard to a unit of Cooper Cos for $1.1 billion, on a day the struggling Israeli drugmaker named industry veteran Kare Schultz as CEO.

The company's U.S.-listed shares were up 1.4 per cent at $18.75 in extended trading after closing up 19.3 percent in regular trading. The sale of the business is the first step in the planned divestment of non-core assets and the proceeds would be used to repay term loan debt.

Saddled with about $35 billion in debt, Teva has speeded up plans to divest non-core assets.

The company continues to look for 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 expects 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 the end of 2017.

The deal with Cooper includes Teva's manufacturing facility in Buffalo, NY, which makes Paragard exclusively.

Paragard, an intrauterine copper contraceptive device, posted revenue of about $168 million for the year ended June 30.

Teva will continue to manufacture and sell Paragard in the United States, until the deal is completed, which is expected before the year end.