In an initial response to Teva's acquisition of Allergan Generics, investment house Oppenheimer writes, "The synergies and contribution to earnings per share may be lower than in the possible deal with Mylan, but Teva is getting a higher quality and more profitable company, and is carrying out the deal smoothly, which will make things much easier for it the day after, from the point of view of keeping key people and so on.
"In addition, Sigurdur Olafsson, CEO of Teva Global Generic Medicines Group, knows the people and the product portfolio at Allergen Generics well, since he was CEO of Actavis (which merged with Allergan in March this year) from 2012 to 2014.
"This means that Teva has a very clear idea of the deal it is getting into, with plenty of knowledge about the acquired company, and in our view this reduces the uncertainty and should make the merger easier.
"We see this as an excellent deal for Teva. We recommend its stock at present with an Outperform rating and a price target of $77, which leaves upside at present levels."
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2015
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