Allergan’s Exploration Of Company Split Could Mean Teva Acquires Generic Drug Unit
Allergan is reportedly contemplating splitting into two business -- keeping its brand-name business but spinning off its generic-drug unit. Teva is involved in talks to acquire it.
Reuters:
Allergen Said To Be Exploring Split Into Two Businesses
Allergan Plc is considering a breakup of the company into two businesses, a person familiar with the matter told Reuters on Friday, potentially adding the botox-maker to a list of large drugmakers realigning themselves to focus on specific areas of their businesses. Allergan is considering keeping its branded drugs business but spinning off or selling parts or all of its generics business, according to the person who asked not to be identified because the deliberations are confidential. (Roumeliotis, 7/24)
The Wall Street Journal:
Teva In Talks To Buy Allergan’s Generic-Drug Unit
Israeli drug maker Teva Pharmaceutical Industries Ltd. is in talks to combine with Allergan PLC’s big generic-drug business, in a move that would further consolidation in the health-care industry and likely mean the end of Teva’s pursuit of another acquisition. (Mattioli, Rockoff, Cimilluca and Hoffman, 7/26)
And Bloomberg offers this take on the health care sector -
Bloomberg:
Drugs Trump Tech As Investors Shift Earnings Bets To Health Care
Traders are loading up on health-care shares, betting the industry will emerge as the brightest spot in an earnings period marked by disappointing results from some of the biggest technology companies. With the Affordable Care Act creating millions of more customers, health-care companies are forecast to see the strongest profit growth of any S&P 500 group in the second quarter. And with merger activity attracting investors seeking takeover premiums, the industry is the most secure and sustainable equity investment right now, according to Bruce Bittles of Robert W. Baird & Co. (Ciolli, 7/24)
