US-based biopharmaceutical firm AbbVie is reportedly in discussions to divest its portfolio of women’s drugs, valued at $5bn.
AbbVie has acquired the portfolio as part of its $63bn acquisition of Allergan, completed last year, reported Reuters citing sources familiar with the matter.
The US drugmaker is working with Morgan Stanley on an auction process to sell the portfolio, which includes Lo Loestrin Fe birth control pill.
Lo Loestrin Fe birth control pill was commercialised by Allergan in 2018 and terminated five months before the acquisition by AbbVie in 2019.
The auction process for the sale of the portfolio has attracted interest from private equity firms, including CVC Capital Partners, but the companies did not respond to the report.
“The portfolio generates 12-month earnings before interest, taxes, depreciation and amortisation (EBITDA) of about $500m and could be valued at about 10 times its EBITDA,” Reuters reported.
AbbVie has been depending on its bestselling psoriasis and rheumatoid arthritis drug Humira to drive up sales and beat revenue forecasts.
Once US patent protection for Humira expires in 2023, the company requires to pay about $143.7bn of debt, accumulated through the Allergan acquisition.
According to the publication, CVC could leverage AbbVie’s division to boost its portfolio company Theramex, established in 2018.
Theramex was formed through the acquisition of Israeli drugmaker Teva Pharmaceutical Industries’ women’s health assets.
Furthermore, the company is engaged in producing birth control pills Zoely and Seasonique, along with osteoporosis drug Actonel.
