BRUSSELS, Nov 7 (Reuters) - Belgian pharmaceutical group UCB said on Friday it would reach its target of a 30 percent core profit margin one year later than expected after selling its generics business Kremers Urban to two private equity firms for $1.525 billion.
“Kremers Urban was a very profitable business,” Chief Financial Officer Detlef Thielgen told a conference call. “We are starting from a lower base to hit the same target so it will take one year longer,” he added.
UCB said it would now hit the 30 percent REBITDA margin target in 2018, rather than 2017.
UCB said that it would use the proceeds of the deal to lower its debt and invest in its core businesses in neurology and immunology. (Reporting by Robert-Jan Bartunek; editing by Philip Blenkinsop)