Teva announced Thursday that it would be acquiring Mexican pharmaceutical manufacturer and distributor Representaciones e Investigaciones Médica SA (Rimsa).
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Teva’s stock was trading up 1 percent in a generally weaker New York market. Teva has been under pressure because its top-selling product, a brand-name multiple-sclerosis treatment called Copaxone, started facing lower-priced competition in the U.S.in June.
The Israeli pharma will shell out $2.3 billion for the generics maker, which pulled in $227 million in 2014 and has recorded annual growth of 10.6% since 2011. In late July it consented to pay $40.5 billion in real money and stock for Allergan’s generics drug business to harden its position as the world’s No. 1 maker of generic drugs.
Beefing up in emerging markets-and generics, Teva’s legacy business-has been high on the list of priorities for Vigodman since he took the helm at Teva early previous year. “This procurement conveys on our strategy of expanding our vicinity in key developing markets with a specific end goal to position Teva pharm for long haul development in these markets”, said Erez Vigodman, Chief Executive.
“In addition to this unique portfolio of patent-protected products, Rimsa differentiates itself as a leading provider of branded specialty drugs, including fixed-dose combinations, which increase adherence and reduce overall costs to patients, ” said Siggi Olafsson, president and CEO of Teva Global Generic Medicines.
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In August, TEVA also bought a 51% share in Immuneering, a genomic analysis company, as part of a drive to develop personalised medicines for central nervous system diseases. When all is said and done, Teva will be among the top five companies in emerging markets globally. It is not expected to affect 2016 adjusted earnings and is expected to boost profit from the first quarter of 2017.
