Teva Withdraws Mylan Offer, Agrees to Acquire Allergan’s Generics Business

July 27, 2015
Randi Hernandez

Randi Hernandez was science editor at BioPharm International from September 2014 to May 2017.

 Teva announced that it has signed a definitive agreement to acquire the generic-drug business of Allergan in a transaction valued at $40.5 billion. The deal is expected to close in the first quarter of 2016.

 

Teva announced that it has signed a definitive agreement to acquire the generic-drug business of Allergan in a transaction valued at $40.5 billion. The deal is expected to close in the first quarter of 2016.

Erez Vigodman, president and CEO of Teva, said in a Teva press release that despite Teva’s efforts to “consummate” a transaction and its belief that the company would have ultimately “succeeded in acquiring Mylan”, the company has “an even greater opportunity to create compelling, sustainable value for Teva’s stockholders” through a transaction with Allergan.

Teva is already known as the world’s largest producer of generic medicines, and this acquisition will only add to its scale. It will gain more than 1000 products with the acquisition of Mylan, adding to its approximately 1000 existing products. Allergan’s generic-drug business continues to operate as Actavis in the United States. Actavis completed its acquisition of Allergan in March 2015.

Under the terms of the deal, Teva will not only acquire Allergan's legacy Actavis global generics business, including the US and international generic commercial units, but will also get Allergan’s third-party supplier Medis, global generic-drug manufacturing operations, its global generic R&D unit, its international over-the-counter (OTC) commercial unit (excluding OTC eye care products), and some established international brands. Allergan will retain its branded pharmaceuticals (such as Botox) and will also retain control of its biosimilars pipeline. Allergan will also retain 50% of Teva's future economics from generic Revlimid (lenalidomide), a popular cancer medication.

Brent Saunders, CEO and president of Actavis, alluded to further consolidation in the generic-drug market in a March 2015 statement about the Actavis acquisition of Allergan: "With the acquisition now complete, we will immediately begin implementing our comprehensive integration plans to ensure that we leverage our strengthened global organization to generate sustainable organic earnings growth from our newly expanded base, and continue our ascent into the fastest-growing and most dynamic growth pharmaceutical company in global healthcare."

Allergan recently acquired biopharmaceutical company Naurex; Naurex has recently been in the news for its mood disorders pipeline. Naurex's lead development product, rapastinel (GLYX-13), is a once-weekly intravenous investigational molecule that has demonstrated "rapid, robust, and sustained efficacy in multiple Phase II clinical studies in depression," according to Allergan.

Source: Teva