Decisions, decisions: UCB to sell its generic unit to private equity firms
- UCB is selling its generics division, Kremers Urban Pharmaceuticals, to Advent and Avista for $1.53 billion.
- In response to the news, UCB, the largest pharma company in Belgium, saw its stock price drop by 4.1%.
- UCB plans to use the capital proceeds to reduce debt and invest in its product pipeline.
UCB's confidence in its pipeline is reflected by its willingness to sell the part of its company with the highest profit margins. In fact, overall UCB margins are 22.3% based on the latest financials, compared with 43% for the generics division; nonetheless UCB is focused on the future.