UCB to sell generics business to Advent and Avista

UCB, a multinational biopharmaceutical manufacturing company, has agreed to sell Kremers Urban, its US-based generic drugs business, to private-equity firms Advent International and Avista Capital Partners.

The agreement – worth $1.53 billion (966.48 million pounds) – focuses on key central nervous system and immunology divisions.

UCB, Belgium’s largest drug manufacturer, has revealed it will use the cash proceeds from the sale of Kremers Urban Pharmaceuticals to reduce its debt and invest in the development of new medicines.

In a statement, Roch Doliveux, chief executive officer of UCB, who will be stepping down in January 2015, said: “This is another step for UCB to enhance focus on our core business in neurology and immunology.”

Mr Doliveux has spent the last ten years moving the firm’s focus away from chemicals and films, while increasing the development of drugs for severe diseases. He was responsible for the integration of Celltech Group, which brought the Cimzia rheumatoid arthritis treatment to UCB.

The company expects the transaction to be completed by the first quarter of next year.

Back in February, UCB revealed that Jean-Christophe Tellier would be leaving his position as head of biopharmaceutical brands and would be taking over from Mr Doliveux as chief executive officer of the the firm in early 2015.