Upcoming Webinars Archived Webinars Training Vitals Host A Webinar About Get Updates Contact

Teva And Allergan Finalize Generics Deal

XTALKS VITALS NEWS

Acquisition

In order to receive the FTC’s support with the deal, Teva agreed to unload 79 generic products onto 11 different companies.

Tweetables from this article:

Tweet: FTC approves $40.5 billion acquisition of Allergan’s generic drugs business by Teva Pharmaceuticals http://ctt.ec/VBj0r+FTC approves $40.5 billion acquisition of Allergan’s generic drugs business by Teva Pharmaceuticals.

Share this!

August 2, 2016 | by Sarah Massey, M.Sc.

Last week, the Federal Trade Commission (FTC) approved the $40.5 billion acquisition of Allergan’s generic drugs business by Israel-based company, Teva Pharmaceuticals. In order to receive the FTC’s support with the deal, Teva agreed to unload 79 generic products onto 11 different companies.

While Teva was already a top generics maker in many markets before the deal with Allergan, the company now expects to be in the top three in more than 40 markets worldwide. The company expects that in the next three years, the acquisition will generate more than $25 billion in revenue.

“The new Teva will be ideally positioned to realize the opportunities the global and U.S. generic markets offer,” said Erez Vigodman, chief executive of Teva. According to the FTC, Teva will soon take control of a 22 percent market share in the US.

“Although this merger combines two large sellers of generic drugs, the generic pharmaceutical industry as a whole remains relatively unconcentrated,” said a statement issued by the FTC. “Over two hundred firms sell generic drugs in the United States and the five largest suppliers account only for about half of overall generic sales.”



Teva has been given ten days to sell off the 79 drugs, some of which were already planned to be divested before the FTC made their decision. The company will be selling the rights to these drugs to a number of their competitors, including Impax Labs, Dr. Reddy’s and Mayne Pharma.

The FTC is also requiring Teva to offer third-party drugmakers long term supply contracts for the active pharmaceutical ingredients (API) manufactured by the generics company. These contracts would provide security to those companies which rely on Teva-produced APIs, preventing the generic drugmaker from cutting supply if a brand-name drug competes with their generic products.

According to Teva, the company will save $1.4 billion in the next three years as a result of reduced operational costs and tax breaks from the deal. “The transaction strongly reinforces our strategy and yields very compelling economics,” said Vigodman. “As a result, it opens a new set of possibilities for us in generics and specialty medicines.”

In anticipation of the acquisition, Teva liquidated $15 billion worth of bonds last week. The company was able to avoid taking on new debt in order to finance their deal with Allergan.


Keywords: Generics, Pharmaceuticals, Acquisition


| NEXT ARTICLE | MORE NEWS | BLOGS | VIDEOS | POLLS & QUIZZES | WEBINARS |

Share this with your colleagues!

MORE NEWS
Researchers Identify Role of ApoE4 Gene as Possible Drug Target in Alzheimer’s Disease

September 21, 2017 - A team of neurology researchers at Washington University School of Medicine in St. Louis have found that in the presence of the ApoE4 protein, another protein known as tau forms tangles in the brain which contributes to neuronal damage characteristic of Alzheimer’s disease.

Featured In: Life Science News


New Guidelines Address CAR-T Immunotherapy Toxicities to Prevent Patient Deaths

September 20, 2017 - Clinicians at The University of Texas MD Anderson Cancer Center have published new guidelines in the journal, Nature Reviews Clinical Oncology, which could help in the management of these toxicities.

Featured In: Biotech News, Drug Safety News


Microneedle Skin Patch Could Treat Common Metabolic Disorders

September 19, 2017 - Researchers at Columbia University Medical Center (CUMC) and the University of North Carolina have developed a microneedle skin patch impregnated with a drug capable of converting white fat into calorie-burning brown fat.

Featured In: Medical Device News


LEAVE A COMMENT
 
  
THE XTALKS VITALS INDUSTRY BLOG

Five Reasons Why Toronto is Emerging as a Major Life Sciences Hub

REGISTER FOR THESE WEBINARS

Development and Manufacture of Highly Potent API Drug Products Throughout the Clinical Phases


Innovation through Integration – Providing Next Generation Biomedical Devices and Interconnects


Clinical Payments Case Studies: Improving Efficiency, Cash Management, and Compliance


Why Phase 3 Trials Fail: Oncology Case Studies and Lessons Learned


Copyright © 2016-2017 Honeycomb Worldwide Inc.