Israeli drug maker Teva Pharmaceutical Industries Ltd.is in talks to combine with Allergan PLC’s big generic-drug business in a move that would represent a continuation of a boom in healthcare deal making and likely the end of Teva’s pursuit of another acquisition. Should the deal with Dublin-based Allergan now go through, there will be two big upsides for Teva, he said.
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A deal could be announced as early as next week, the person said, cautioning that negotiations had not yet been completed and asking not to be identified because the discussions are confidential.
Teva has been pursuing a deal to buy rival Mylan and solidify its role as the industry giant. Teva and Allergan representatives did not respond to requests for comment.
Allergan’s generics portfolio includes more than 1,000 drugs, including branded generics, established brands and over-the-counter products, according to the company’s website. Its generics business makes up about a third of the company’s total revenue.
The foundation, known as Stichting, opposes Teva’s bid, arguing that a Teva takeover would likely lead to job losses at Mylan and reduce access to cheap generic medicines in emerging markets.
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Teva’s market position will be bolstered once it acquires the generic drug unit of Allergan. Since hitting a year high of $68.74 in New York on April 9, just before speculation on a possible Mylan bid had surfaced, Teva shares are down more than 10 percent, closing on Friday at $61.85. Allergan’s generics operations has about $7 billion in sales, said Umer Raffat, an analyst with investment research firm ISI Group. Mylan has also been attempting in acquiring Perrigo, another drug maker that resisted a takeover campaign.
