Teva Pharmaceutical Industries, Ltd. announced Monday it has signed a definitive agreement with Allergan, PLC to acquire Allergan Generics in a transaction valued at $40.5 billion.
The strategic acquisition brings together two leading generics businesses with complementary strengths, brands and cultures, giving patients more affordable access to quality medicines and creating significant financial benefits for Teva stockholders.
The transaction will create a leader in the INN (international nonproprietary name) and branded generics industry with an overall product portfolio that leads the industry in terms of differentiation and durability as well as offering promising growth opportunities.
“This transaction delivers on Teva’s strategic objectives in both generics and specialty,” Teva President and CEO Erez Vigodman said. “Through our acquisition of Allergan Generics, we will establish a strong foundation for long-term, sustainable growth, anchored by leading generics capabilities and a world-class late-stage pipeline that will accelerate our ability to build an exceptional portfolio of products – both in generics and specialty as well as the intersection of the two. Our respective portfolios of generic medicines and applications are highly complementary, providing Teva with high quality growth and earnings visibility, and the scale and resources to expand upon our specialty capabilities.”
Upon closing, Allergan will receive $33.75 billion in cash and shares of Teva valued at $6.75 billion, representing an ownership stake in Teva estimated at under 10 percent.
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