Theramex acquired by CVC

CVC Capital Partners completed the acquisition of Teva’s international women’s health portfolio on 1 February 2018, through CVC Fund VI, for $500M–1.5bn in cash. The agreement had been reached in the third quarter of 2017. The assets were established as a standalone company named Theramex, headquartered in London, with Anish Mehta as chief executive and Fred Hassan, formerly chairman and chief executive of Schering-Plough, appointed chairman in November 2017. The portfolio covers contraception, fertility, menopause and osteoporosis, sold in 50 countries outside the United States under brands including Ovaleap, Zoely, Seasonique, Colpotrophine, Actonel, Estreva and Lutenyl. It combines branded medicines with branded generics, and the Theramex name itself carries a long history in women’s health across several European markets. Teva sold to reduce debt. The group had borrowed heavily to acquire Actavis in 2016 and spent the following two years disposing of assets, raising 2.48 billion dollars from its women’s health divestitures alone, above the 2.3 billion it had expected. The proceeds from this transaction were applied to term loan repayment. Products of this kind suit a dedicated owner better than a generic manufacturer. They are established treatments with stable prescribing patterns, requiring a specialist sales force calling on gynaecologists rather than the volume distribution that governs generics, and within a group organised around the latter they received limited commercial attention. CVC intended to grow the company through business development and acquisitions, a strategy it pursued over four years before selling to Carlyle and PAI Partners in 2022. Rothschild & Co, Royal Bank of Canada, Jefferies and Barclays advised CVC, with Latham & Watkins and Jones Day as legal counsel, while Morgan Stanley advised Teva, with Ernst & Young on accounting and Goodwin Procter as counsel.

The acquisition of Theramex is part of the growth strategy of CVC, which already has several external growth operations under its belt, notably Sebia in 2017.