Teva Wins US Nod for Allergan’s Generics
Israel’s Teva Pharmaceutical Industries has been cleared by the US Federal Trade Commission (FTC) to proceed with its purchase of Allergan’s generics business after agreeing to sell 79 of its drugs. The FTC ruled that the $40.5 billion acquisition could only go ahead if Teva sold the rights and assets related to the drugs to 11 rival firms, marking the agency’s largest ever divestment order in a pharmaceutical merger.
The drugs being sold include anesthetics, antibiotics, weight-loss products, oral contraceptives and treatments for various diseases and conditions. The purchasers are Mayne Pharma, Impax Laboratories, Dr. Reddy’s Laboratories, Sagent Pharmaceuticals, Cipla, Zydus Worldwide, Mikah Pharma, Perrigo Pharma, Aurobindo Pharma, Prasco and 3M.
The transaction, which solidifies Teva’s position as the world’s leading generics producer, is expected to close next week. European approval was granted in March this year, provided Teva sold its portfolio in Iceland, and both parties divested the bulk of their generic businesses in the UK and Ireland.
Describing the deal as a “transformative step,” CEO Erez Vigodman said the generics industry is one of the most attractive in the world in terms of growth and profitability. “It opens a new set of possibilities for us in generics and specialty medicines,” he commented. On completion, Teva will have roughly 338 product registrations pending US regulatory approval and will be the leading initial market entrant for about 115 pending US generic drug applications.
Vigodman said the acquisition will generate $1.4 billion in operational and tax savings by the end of 2019, and would raise adjusted earnings by 14% in 2017, and 19% in 2019.