Interviewed on Galei Tzahal, the Teva CEO called the acquisition of Taiyo "very important."
Shortly after Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) announced that it was buying 57% of Japanese generic drugs company Taiyo Pharmaceutical Industry Co. Ltd. for $460 million, Teva CEO Shlomo Yanai was interviewed on Galei Tzahal (Israel Army Radio) by Razi Barkai. "A short time ago, we signed an agreement to acquire the Japanese company, and so in effect we have bought it. Our intention is to reach full ownership. This means an investment of over $1 billion in the Japanese market, and it's very important to Teva."
Asked how he explained what has happened to Teva's share price in recent months, when it has fallen sharply, Yanai responded, "The stock exchange is not just a matter of economics and real values, in which terms Teva is a very strong company. The stock market has a dynamic of its own. It should reflect economic activity, but sometimes that can take time. Teva has a proven history of an above-market return, and that is what will happen in the future too."
Yanai stressed that the acquisition was a weighty decision that had been worked on for a long time.
Published by Globes [online], Israel business news - www.globes-online.com - on May 16, 2011
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