Teva Pharmaceutical Industries Ltd., the world’s largest generic-drug company by sales, finally agreed to buy Allergan PLC’s generics unit for $40.5 billion. This is the greatest financial acquisition ever made by an Israeli company, Jerusalem Post says. This deal is to spring the company to the highest ranks of global drug manufacturers, placing it among the top 10.
Israeli Prime Minister Netanyahu referenced the transaction proudly at a speech he delivered at the Knesset, where he encouraged other big Israeli companies to follow its example.
Teva has acorded to pay Irish company Allergan $33.75 billion in cash and with shares worth around $6.75 billion, which would make up for about 10% of the company’s ownership. DealBook’s Chad Bray says,“The Allergan deal cements Teva’s position as the world’s biggest seller of off-brand medicine. Last year it recorded revenue of $20.3 billion.”
Teva had been stressed for months over business deal with Mylan, another important pharmaceutical company in the Netherlands. Arrangements were never met since company was pursuing Perrigo, another drug maker to take over.
In this deal, Teva will obtain all of Allergan’s Actavis business, which comprises all its commercial units related to generics and international OTC units. Teva President and Chair Erez Vigodman says, “This transaction delivers on Teva’s strategic objectives in both generics and specialty… 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,”