Dive Brief:
- 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.
Dive Insight:
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.