Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has moved to bolster sales in its generic business unit with the unveiling of a generic version for diabetes drug Glumetza in the US. Dubbed metformin hydrochloride, the drug will go on sale in 500 milligrams and 1,000 milligrams as the drug maker moves to target to over 28 million people across the U.S struggling with type 2 diabetes.

Glumetza Generic

The generic version is designed to be used with diet and exercise to help in controlling high blood pressure in people with type 2 diabetes. However, the drug is not for people with diabetic ketoacidosis or type 1 diabetes.

Sales for Glumetza which was marketed by Salix prior to its acquisition by Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) are poised to come under pressure with the generic version unveiling in the U.S. The drug generated $1.03 billion in sales last year a feat that will be hard to replicate with metformin hydrochloride hitting the market.

The launch of metformin hydrochloride marks yet another milestone for Teva which has been investing big in generics as it looks to diversify its sources of revenue. The drug maker now boasts of over 600 generic medicines making its portfolio the largest in the industry. One in six generic prescriptions dispensed in the US are filled by Teva.

Teva Divestiture Plans

Separately, Teva is planning to divest some of its core assets as part of an effort that seeks to raise cash for trimming debt. Bloomberg reports that the company is planning to spin off its global women and European cancer and pain division, as part of the latest restructuring push.

The company is currently working with Morgan Stanley (NYSE:MS) as it continues to look for a buyer for the Women’s health business. The unit generated $560 million in revenue last year. Teva has also confirmed the hiring of Bank of America Corp (NYSE:BAC) in assisting with the divestiture of its oncology and pain business in Europe.

The company’s cash flow has been dwindling faster in recent years arousing concerns among investors about the company’s ability to pay down its debt. With generic drug prices poised to drop by 7% in the U.S, spinning off some assets to generate cash flow appears to be the company’s only option.

Shares of Teva Pharmaceutical were up by 1.32% in Monday trading session ending the day at highs of $32.31 a share.