Teva Pharmaceutical’s acquisition of the Allergan’s unit will make it the world’s No. 1 distributor of generic drugs.
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Israeli drug firm Teva has agreed to buy Dublin-headquartered Allergan’s generic drugs business for £26.1bn (€36.6bn) in a cash and stock deal that will turn Teva into one of the world’s largest pharmaceutical companies.
Under the terms of the agreement, Allergan is to receive $33.75 billion in cash while being entitled to $6.75 billion worth of Teva stock representing a 10% stake.
Teva had been stressed for months over business deal with Mylan, another important pharmaceutical company in the Netherlands. “Since announcing the proposal to acquire Mylan on April 21, 2015, we have appreciated the opportunity to talk with many of our investors about the future of the generics industry, and we are confident our proposed transaction with Allergan best positions Teva to succeed in today’s industry landscape”. A strong shekel caused revenue to slip 2% to $4.97 billion, but excluding the impact of foreign exchange fluctuations and the sale of over-the-counter factories in the United States a year ago, revenue was up 6%, the company said. But the deal fell apart Mylan’s independent Dutch foundation exercised its call option to purchase 50 percent of Mylan’s issued and outstanding capital. Aetna Inc., the nation’s third-largest insurer, also plans a $35 billion bid for Humana Inc. In a statement, the company said that the acquisition would provide patients with more access to affordable medicines.
Teva’s deal with Allergan was unanimously approved by the boards of both companies and is expected to close in the first quarter of 2016. If the same trend continued, it would beat the record of over $200 billion past year.
His company is now pressing ahead with its offer for Irish drug and ingredients maker Perrigo.
Mission accomplished: Teva has acquired Allergan’s generics division-a division that includes more than 1,000 OTC and branded drugs, including generic OxyContin and generic Concerta. Teva has been looking to acquire Mylan, however the latter has repeatedly rejected it’s advances.
Now, the Teva deal should boost total Allergan-Actavis fees to about $820 million, according to Freeman. This means it will be able to pursue acquisitions to expand its portfolio in both specialty pharmaceuticals and generics.
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“We consider Teva’s stakebuilding as a further indication of its intention to meddle with our business, strategy and mission while remaining unclear as to its actual intentions”, Mylan said in a letter addressed to Teva’s CEO.
