Teva completes $40 billion acquisition of Actavis Generics
Teva has announced that it has completed its acquisition of Actavis Generics, a subsidiary of Allergan, in a transaction valued at $40 billion.
The move seeks to unify the strengths of each business in order to ‘realise the opportunities the very attractive global and US generics markets offer, and to deliver the highest-quality generic medicines at the most competitive prices, unlocking value to patients, healthcare systems and investors around the world’, the company said.
“The acquisition of Actavis Generics comes at a time when Teva is stronger than ever – in both our generics and specialty businesses,” commented Erez Vigodman, president and CEO at Teva. “Through our acquisition of Actavis Generics, we are creating a new Teva with a strong foundation, significantly enhanced financial profile and more diversified revenue source and profit streams backed by strong product development engines in both generics and specialty. This is a platform that is expected to generate multi-year top-line and bottom-line growth as well as significant cash flow.”
As a condition of the European Commission’s approval and in order to maintain competition in the UK and Ireland, Teva must divest a viable standalone business operation based around Actavis’ assets, including a portfolio of generic molecules and Actavis’ Barnstaple manufacturing plant and the staff to run the unit. This standalone unit is to be sold in the near future.
The remainder of Allergan’s generics will be integrated into Teva’s operations. 33 roles will transition to the Teva UK business from Actavis in addition to generic lines, cystic fibrosis medicines and over-the-counter products including sudocrem and infacol (simethicone).
“We are really pleased to have reached day one of this acquisition and are delighted to be welcoming so many talented individuals to our expanded organisation,” said Richard Daniell, UK general manager and chief integration officer. “Our job now is to embrace the new opportunities available to us and continue to work to deliver positive outcomes for both patients and the NHS.”
The acquisition was originally announced last July, but has suffered delays due to issues receiving clearance from the United States Federal Trade Commission.
Brent Saunders, CEO and president of Allergan remarked: “With the divestiture of our Global Generics business, Allergan completes the most crucial step in its strategic evolution into a focused Branded Growth Pharma leader. Allergan is the most dynamic and exciting company in our industry and is well-positioned to expand our leadership across our seven key therapeutic areas, enhance our world-class R&D pipeline through Open Science and build on our strong track record of value creation.”
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