Teva to profit from Roche's Ignyta acquisition

Teva Photo: Tamar Matsafi

Teva sold commercialization rights to four cancer drugs to Ignyta in 2015 for a 6% stake in the US company.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) will earn a handsome profit from Roche's $1.7 billion acquisition of US cancer developer Ignyta. The Swiss pharmaceutical giant is paying $27 per share to buy Ignyta, whose share price on Nasdaq was $15.55 on the eve of Roche's announcement.

In March 2015, Ignyta acquired commercialization rights for four Teva cancer drugs in exchange for a 6% stake in the oncology developer. Teva subsequently bought an addition 1.5 million Ignyta shares at $10 per share. However, over the past few years Teva has been selling of its stake in Ignyta and as of March held slightly under 5% in the company. If Teva still holds this stake it would be worth $85 million - a small but badly needed boost as the Israeli pharmaceuticals company looks to reduce the $35 billion debt it assumed in buying Actavis.

Published by Globes [online], Israel business news - - on December 22, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017 .

Teva Photo: Tamar Matsafi
Teva Photo: Tamar Matsafi
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