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Bayer expands animal health business with acquisition from Teva.
Teva announced an agreement in which Bayer HealthCare will acquire the US-based animal health business of Teva Pharmaceutical Industries for up to 145 million USD, Teva said in a Sept. 14 press release. The transaction is expected to close in 2013, subject to antitrust clearance and other conditions.
The purchase price includes an upfront payment of 60 million USD plus a total of 85 million USD in milestone payments, which are linked to the successful and timely achievement of manufacturing and sales targets. The transaction involves a manufacturing site in St. Joseph, Missouri and around 300 employees.
The acquisition allows Bayer to expand its companion and food-animal product lines in the United States by integrating the acquired assets into its animal health business. “The businesses are a great strategic fit, and Teva’s animal health portfolio adds new depth for us across both the companion and food animal areas. We believe it will be a win-win for both our customers and our combined employee bases,” said Ian Spinks, president and general manager of Bayer HealthCare Animal Health North America, in the Teva press release.
The deal reflects Teva’s focus on human health. “As part of our overall strategy to refine our global footprint, we will continue to leverage our product portfolio and R&D efforts while selling or out-licensing assets that no longer fit within the scope of our business,” said Itzhak Krinsky, group executive vice president and head of business development of Teva, in the press release.
Teva’s exit from the animal health segment follows Pfizer’s announcement in August of a plan to transfer its animal health business to its Zoetis subsidiary prior to a pending IPO.