With the move, Teva hopes to maximize current and potential revenue streams, focusing on capital reallocation towards growth and innovation, and to better address distinct, growing markets with its product offerings. The divestment will also allow TAPI to pursue new growth strategies, enabling it to maximize an array of opportunities in the $85 billion global API market, Teva said in a statement.

Richard Francis, Teva's president and CEO said: "The divestiture of TAPI will play an important role in the execution of our Pivot to Growth strategy in this new era for Teva, as it will allow us to increase the focus on our core business, continue to invest in our growth drivers, accelerate our innovative and biosimilar pipeline, and position our generics portfolio and pipeline to drive growth for the future."

"Our goal, operating outside of Teva, is to enable TAPI to maximize its potential for growth, capture more opportunities with third-party customers, leverage its technology, expand its capabilities and continue to support generics players and innovators, including Teva, worldwide," added R. Ananth, CEO of TAPI.

Teva expects the intended divestiture to be completed in the first half of 2025.