Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and Allergan plc (NYSE: AGN) today announced that Teva has completed its acquisition of Allergan’s generics business - Actavis Generics.
Allergan received $33.43 billion in cash and approximately 100 million Teva shares worth about $5.3 billion. Over the past few weeks Teva has raised more than $20 billion in debt in the US and Europe to finance the deal, which was first agreed in July 2015. It was only last week that Teva finally received US antitrust agreement for the merger.
Teva president and CEO Erez Vigodman said, “The acquisition of Actavis Generics comes at a time when Teva is stronger than ever- in both our generics and specialty businesses. Through our acquisition of Actavis Generics, we are creating a new Teva with a strong foundation, significantly enhanced financial profile and more diversified revenue sources and profit streams backed by strong product development engines in both generics and specialty. This is a platform that is expected to generate multi-year top-line and bottom-line growth as well as significant cash flow."
He added, “We are confident that we can realize the projected synergies and accretion inherent in this acquisition for our stockholders and quickly integrate Actavis Generics into Teva. Furthermore, as a result of our strengthened financial profile following this transaction, we will be even better positioned to reap the benefits of Teva’s R&D capabilities to support top-line growth and expand our portfolio across the business. The strong, combined company cash flow will allow for rapid deleveraging and give us the ability to continue capital allocation, with a focus on bolstering our specialty pipeline and product portfolio as well as strengthening shareholder returns.”
With the acquisition, Teva now has approximately 338 product registrations pending FDA approval and holds the leading position in first-to-file opportunities with approximately 115 pending ANDAs in the U.S. In Europe, after divestitures; Teva will have a pipeline capable of over 5000 launches across the region. In Teva growth markets including, Asia, Africa, Latin America, Middle East, Russia and CIS, there are now approximately 600 pending product approvals. Overall, Teva is planning for 1,500 generic launches globally in 2017.
Teva expects to achieve cost synergies and tax savings of approximately $1.4 billion annually by the end of 2019, by eliminating duplication and inefficiencies on a global scale and capturing economies of scale.
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2016
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