Impax to acquire Teva, Allergan generic drugs for $586 million
Impax Laboratories (NASDAQ: IPXL) has announced that it has entered into agreements with Teva and affiliates of Allergan to acquire a broad range of generic products for an aggregate price of $586 million.
As part of the deal, Impax will add a portfolio of 15 currently approved generic products, the rights to the pending abbreviate new drug application for the generic equivalent of Concerta (methylphenidate hydrochloride), and other pipeline generic products at various stages of development.
Teva agreed to buy Allergan’s generics business last year for $40 billion, but the closing of the deal has been delayed as the pair awaited regulatory approval. In the past few months, Teva has sold drugs to Sagent Pharmaceuticals and Dr. Reddy’s Laboratories, for $40 million and $350 million, respectively.
Impax expect these generic acquisitions to provide an immediately profitable and growing commercialised portfolio of products. The company had updated its financial guidance for the year as a result, with total revenue expected to increase by at least 15% and earnings per share to increase by at least 20%.
CEO Fred Wilkinson says: “The anticipated addition of 15 marketed products from the transaction is currently expected to add approximately $80 million of revenue in the second half of 2016 and is expected to offset the revenue decline from recent competition on our diclofenac sodium gel and metaxalone products.”
This generics acquisition fits in with their overall strategy, according to Wilkinson. He adds: “The anticipated acquisition of these currently marketed and pipeline products fits with our strategic priorities of maximising our generic platform, optimising R&D and accelerating business development to create long term growth.”
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