Please login to the form below

Not currently logged in
Email:
Password:

Teva acquires Allergan’s generics operations in $38.8bn deal

Also discloses $500m agreement to purchase the Irish firm’s distribution business
Teva Pharmaceutical Industries

Teva Pharmaceutical Industries, the global leader in generic drugs sales, has further bolstered its market dominance with the purchase of Allergan's generics business, Actavis Generics.

Hailed by the two firms as a move that unites “complementary strengths, research and development capabilities, product pipelines and portfolios”, Allergan will receive a £33.4bn upfront payment as well as 100m Teva shares, valued at around $5.4bn.

Erez Vigodman, president and chief executive at Teva, said that the acquisition of Actavis Generics “comes at a time when Teva is stronger than ever - in both our generics and specialty businesses”.

He added: “Through our acquisition of Actavis, we are creating a new Teva with a strong foundation, significantly enhanced financial portfolio and more diversified revenue source and profit streams backed by strong product development engines in both generics and specialty.

“This is a platform that is expected to generate multi-year top-line and bottom-line growth as well as significant cash flow.”

The acquisition does, however, hinge on Teva's divestment of a number of Actavis' assets by order of the European Commission to maintain competitive trading standards in the UK and Irish markets.

A stand-alone operation comprising a portfolio of the recently-acquired generic candidates and Actavis' Barnstaple manufacturing plant will therefore be created and managed by Teva's UK operations, to be sold off at a later date.

The Israeli pharmaceutical firm currently has over 400 products awaiting FDA and Abbreviated New Drug Application (ANDA) approval in the US, and expects to launch 1,500 generics worldwide in 2017.

Teva to buy Anda in second half of 2016
Teva has also revealed a $500m agreement to purchase Allergan's US distribution business, Anda, with the deal expected to close by the end of the year.

Allergan's president and chief executive Brent Saunders said the sale of the generic, brand, specialty and over-the-counter medicines distribution giant enables the company to concentrate on its product development.

"For Allergan, this divestiture continues our evolution as a focused branded Growth Pharma leader, powered by growing leadership positions across our seven therapeutics areas, developing and bringing to market innovative therapies from our industry-leading pipeline, simplified operating structure and adding new development programmes through our Open Science R&D model,” he explained.

Once the transaction has been completed, Anda will continue to operate as a stand-alone business within the Teva group.

Article by
Rebecca Clifford

4th August 2016

From: Sales

Share

Tags

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
M3 (EU)

M3 was founded in 2000 with the goal of changing the world of medicine through making full use of the...

Latest intelligence

PM Society Digital Awards – the power of together
Our chief executive, Emma Statham, writes about the value of awards and the power of together....
Seduction_feature_image_thumb.jpg
Seduce anyone in four simple steps
You know the health of the global economy is dependent on our ability to seduce one another – don’t you? And you know that we need to be able to...
What Would Jeremy Do? : Assessing the impact of a Corbyn-led Labour government
GK Strategy are delighted to announce the launch our latest briefing paper entitled ‘What Would Jeremy Do? Assessing the impact of a Corbyn-led Labour government’....

Infographics