Morning Briefing
Summaries of health policy coverage from major news organizations
Teva Agrees To Allergan Purchase; Price Tag Set At $40B
Marketplace: Teva Agrees To Buy Allergan For $40 Billion
The world’s largest manufacturer of generic drugs, Teva, has bagged some big game. Monday morning, the company announced that it has agreed to buy Allergan’s generic business for a little more than $40 billion. If approved, the deal places Teva amongst the largest drug companies on the planet. (Gorenstein, 7/27)
Reuters: Teva To Buy Allergan Generic Business For $40.5B, Drops Mylan Bid
Israel's Teva Pharmaceutical Industries will pay $40.5 billion in cash and stock for Allergan's generic drugs business, solidifying Teva's position as the world's No. 1 maker of generics while freeing Allergan to focus on branded drugs, paying down debt and potential "transformational" acquisitions. The deal, the largest in Israel's corporate history, allows Teva stronger economies of scale, crucial in the low-margin generic drugs business. Teva , which dropped its hostile pursuit of Mylan, will likely have to sell off some drugs to allay antitrust concerns. (Cohen and Scheer, 7/27)
Meanwhile, the big picture -
The Associated Press: Analysts Expect More Tie-Ups In Generic Drug Business
Analysts say they expect more tie-ups are coming in the generic drug industry in the wake of Teva’s mammoth deal for the generic drug business of Allergan. The Dutch drugmaker Mylan, which had resisted Teva’s advances for three months, is pressing ahead with its offer for Irish drug and ingredients maker Perrigo. Teva withdrew its offer for Mylan on Monday as it announced its alternative deal. (7/27)
