Shortly before publishing its long-term forecasts, including the generic division it is acquiring from Allergan, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today reported another technical delay of the deal's completion - the third so far. However, after CEO Erez Vigodman reassured investors that the deal would be completed "any moment" the share rose 4.75% on the day in a huge trading volume. Vigodman revealed that the new 2016 forecasts given today include Allegan generics revenues from August 1.
Teva is also readying to raise $20-25 billion next week to finance completion of the deal
The agreement has now been technically extended until late October, while the deal, announced in July 2015, was originally scheduled for completion in the first quarter of 2016. At the same time, Teva reported that its cash payment to Allergan would be reduced by $221 million.
Teva yesterday announced that it was raising its forecasts for the second quarter, and would publish its forecasts for 2016-2019 today, including the contribution of Actavis - the division acquired from Allergan. Teva originally planned to publish its forecasts in September.
Completion of the deal has already been postponed three times: from the first quarter to April, from April to June, and now to October. Teva and Allergan are still waiting for approval from the US Federal Trade Commission.
The fact that Teva is publishing its forecast today, despite failing to complete the $40.5 billion deal, indicates the company's confidence that it will be able to complete it.
Published by Globes [online], Israel business news - www.globes-online.com - on July 13, 2016
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