With the aim of securing the European Commission's nod to its $35B acquisition of Actavis Generics, Teva Pharmaceutical Industries (TEVA -0.6%) sells Actavis' UK and Ireland assets and operations to Intas Pharmaceuticals unit Accord Healthcare Limited for ₤603M ($766M).
The deal includes a portfolio of generic medicines and a manufacturing plant in Barnstaple, England. Teva retains certain non-overlapping generics and certain specialty medicines and OTC products.
The transaction should close within the next three months.
As previously reported, Bayer (OTCPK:BAYRY) aims to jettison its dermatology business in order to help fund its Monsanto buy. Although discussions are in the early phase, there appears to be plenty of interested parties. In addition to skincare-focused players like Allergan (NYSE:AGN), Almirall (OTC:LBTSF) and Nestle (OTCPK:NSRGY)(OTCPK:NSRGF), Teva Pharmaceutical Industries (NASDAQ:TEVA), Perrigo (NASDAQ:PRGO) and Sun Pharma (OTC:SMPQY) are also reportedly in the mix.
On the institutional investor side, KKR (NYSE:KKR), Nordic Capital, Bain Capital, Blackstone Group (NYSE:BX) and Cinven may also be eyeing the unit which, analysts say, could fetch $1.1B.
Teva will target “attractive specialty assets, or branded drug assets or pipeline assets” that fit with medicines for pain, migraines, neuro-degenerative and movement disorders, as well as respiratory diseases, the CEO says.
Even so, integrating AGN is Teva’s top priority, according to Vigodman; Teva also will need to absorb AGN's Anda U.S. distribution unit, which it agreed to acquire today for $500M.
AGN says Anda will be reported as discontinued operations starting in Q2, with the business expected to generate $375M in net sales and ~$0.05/share in Q2, amounting to ~$1.5B in net sales and ~$0.15/per share in 2016.
The U.S. Federal Trade Commission (FTC) accepts the proposed consent order related to Teva Pharmaceutical Industries' (TEVA +1.4%) acquisition of Actavis Generics (AGN +4.4%). The transaction, now valued at ~$35B, should close next week.
According to Teva, the deal will be 14% accretive to 2017 non-GAAP EPS, increasing to 19% in 2019. The combined firm should generate more than $25B in free cash flow through 2019.
In a regulatory filing, Allergan (NYSE:AGN) reports that it and (NYSE:TEVA) agreed to extend the outside date of their deal to October 26 from July 26 (this is the date that the closing must occur). On the conference call this morning, management stated that the close is imminent, however.
Other amendments include increasing the base working capital adjustment by at least $650M (up to $800M under certain circumstances), adding Actonel (authorized generic) and Carafate (authorized generic) to the list of excluded products and a reduction in the cash consideration to be paid by $221M.
Impax Laboratories (NASDAQ:IPXL) acquires a group of 15 generic drugs from Teva Pharmaceutical Industries (NYSE:TEVA) and affiliates of Allergan (NYSE:AGN) for total consideration of $586M. The transaction also includes the return of the rights to the pending abbreviated New Drug Application (ANDA) for a generic version of Johnson & Johnson's (NYSE:JNJ) Concerta (methylphenidate hydrochloride) to Impax.
The deal will be immediately accretive to Impax's earnings. The group generated ~$150M in sales and ~$100M in gross profit in 2015. Per IMS, the U.S. market for the portfolio is ~$3.1B.
Impax will finance the acquisition with cash on hand and $400M in term loans.
Teva divested the products to satisfy U.S. Federal Trade Commission conditions for its planned acquisition of Allergan's generics business.
Looking to bolster its U.S. business, Dr. Reddy's Laboratories (NYSE:RDY) has agreed to buy eight generic medicines from Teva Pharmaceutical (NYSE:TEVA) and Allergan (NYSE:AGN) for $350M in cash.
The sale to India's second-largest drugmaker could put Teva a step closer to winning U.S. antitrust clearance for its $40.5B acquisition of Allergan's generic drugs portfolio, and is contingent on the deal's approval.
Teva Pharmaceutical (NYSE:TEVA) is finalizing as much as $2B in asset sale agreements to win U.S. antitrust clearance for its $40.5B acquisition of Allergan's (NYSE:AGN) generic drug portfolio, according to Reuters.
Teva said in March that a regulatory review of the deal by the Federal Trade Commission was taking longer than anticipated, and that it expected the transaction to be completed by June.
Although disheartened that its merger with Pfizer (NYSE:PFE) is dead, Allergan (NYSE:AGN) is bullish on its standalone profile. CEO Brent Saunders says, "While we are disappointed that the Pfizer transaction will no longer mover forward, Allergan is poised to deliver strong, sustainable growth built of a set of powerful attributes. Our pipeline is one of the strongest in the industry, loaded with 70 mid-to-late-stage programs including 14 expected approvals and 16 regulatory submissions in 2016 alone."
Based on a preliminary review of the proposed regulations from the U.S. Treasury Department, the company believes they will not have a material impact on its standalone tax rate. Q1 earnings will be reported no later than May 10. During the conference call, management will update investors on its plans to simplify the company's operations after it divests its generics business to (NYSE:TEVA).
Allergan will host a brief conference call this morning at 10:00 am ET to discuss its standalone prospects.
Pfizer says it will make a decision on splitting the company's innovative and established businesses by the end of the year. It will report Q1 results on May 3. It has agreed to reimburse Allergan $150M for merger-related expenses.
Teva Pharmaceutical (NYSE:TEVA) is expected to win EU antitrust approval today for its $40.5B bid for Allergan's (NYSE:AGN) generics unit after agreeing to sell off some of its products to appease regulators, Reuters reports.
How much is being sold? Sources previously told the news agency that global assets worth about $1B would be unloaded to secure the green light.
The deal, the largest in Israel's corporate history, would see Teva gain bigger economies of scale, a crucial element in the low-margin generic drugs business.
According to sources close to the matter, Teva Pharmaceutical Industries (TEVA +2.2%) is currently divesting $1B in assets in order to address antitrust concerns related to its intended $40.5B acquisition of Allergan's (AGN -0.2%) generics business, Actavis Generics. The move will help ensure that the deal goes through in Q1 as planned.
Teva Pharmaceutical Industries (NYSE:TEVA) and Takeda Pharmaceutical (OTCPK:TKPHF)(OTCPK:TKPYY) form a joint venture in Japan with the aim of building a leadership position in the fast-growing generic medicines there. The government, trying to address the medical needs of its aging population, intends to reach 80% generic penetration in its drugs market by the end of fiscal year 2020.
The new business, expected to start operating in Q2 2016, will leverage Teva's extensive generics portfolio with Takeda's brand presence and distribution capabilities. Teva will be the majority owner with a 51% stake while Takeda will own 49%.
Teva Pharmaceutical Industries (NYSE:TEVA) acquires Mexico City-based Representaciones e Investigaciones Medicas, S.A. de C.V. (Rimsa) for $2.3B. The transaction establishes Teva as the leading pharma firm in Mexico and positions it for long-term growth in Latin America.
Rimsa's revenues for 2014 were $227M with an annual top-line growth rate of over 10%.
The deal, funded with cash on hand and lines of credit, should close in Q1. It is expected to be accretive to Teva's non-GAAP earnings starting Q1 2017.
Teva Pharmaceutical Industries (NYSE:TEVA) acquires Cambridge, MA-based Gecko Health Innovations for an undisclosed sum. Gecko creates smart solutions that help patients with chronic diseases to better manager their condition. With an initial focus on COPD and asthma, it has designed and built hardware and software solutions to collect and present important data in a high-value-added way using behavioral tools to promote better disease management. It launched CareTRx this year, which is a cloud-based solution designed to simplify chronic respiratory disease management via connecting patients and caregivers through remote monitoring and real-time adherence tools.
The acquisition will allow Teva to explore innovative ways to apply the CareTRx technology to its pipeline and portfolio of respiratory products with the aim of improving clinical outcomes for patients.
To further its emphasis on personalized medicine, Teva Pharmaceutical Industries (TEVA -0.1%) establishes a 51% equity stake in privately-held Cambridge, MA-based Immuneering, a genomic analysis company that employs proprietary algorithms using genetic, genomic and proteomic data to generate biological insights that enhance the clinical and commercial success of medicines.
The firms have been working together over the past several years in characterizing non-biological complex drugs in addition to genetic biomarkers and therapy-specific gene expression signatures. Teva has the right of first refusal in projects related to Immuneering's work in central nervous system disorders.
The specific amount of Teva's investment is not disclosed.