Who wants to buy Teva’s API business?

The world's number two producer of active pharmaceutical ingredients (APIs) is for sale. Given the constant global demand for essential medicines, the business might seem like a lucrative asset. But with low profit margins and fierce competition in the sector, suitors could actually be few and far between. On Jan. 31, Israel's Teva Pharmaceutical Industries announced plans to divest its API business , dubbed TAPI, to reallocate financial resources to its innovative and generic drug segments. TAPI may be big, but it has been struggling lately. While Teva's overall sales jumped 7% in 2023 compared with 2022, third-party sales by its API segment plummeted 16%, to $568 million. The business also supplies Teva's generic drug–making division. Teva's API arm has 4,300 employees and produces some 350 active substances used mainly to make small-molecule generic medicines. It has 13 manufacturing facilities globally, most of which are in Europe. The company has