Teva Pharmaceutical Industries Ltd.'s (TEVA) shares once again surged in premarket trading Tuesday as the market responded to the sale of its contraceptive brand.
Teva's New York-listed shares were up 7.63% in premarket trading, indicated to open at $19.90. Shares closed 19.35% higher on Monday at $18.50 after the company announced it had appointed Kare Schultz as its new CEO.
The drugmaker's shares in Tel-Aviv were up 10.28% on Tuesday.
The Israel-based drugmaker on Monday after the market close announced it had signed a deal to sell its Paragard intrauterine copper contraceptive to Cooper Cos. Inc. COO in a $1.1 billion cash deal.
Paragard, which is sold in the U.S., generated revenue of about $168 million in the 12 months ended June 30, 2017. The transaction includes Teva's manufacturing facility in Buffalo, N.Y., which makes Paragard.
The deal "emphasizes our commitment to divest non-core businesses to ensure that Teva is even more focused and efficient in this rapidly changing and highly-competitive environment," Interim CEO Yitzhak Peterburg said in a statement. Proceeds from the sale will be used to repay term loan debt under Teva's senior credit facility, Peterburg added.
The company on Monday also said it had appointed named Kare Schultz as president and CEO, ending months of speculation about who would replace former head Erez Vigodman, who left the company in February for undisclosed reasons.
Schultz will replace Yitzhak Peterburg who has been interim CEO since February.