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The world’s biggest generic drugmaker Teva Pharmaceutical has announced plans to strengthen its dominance with the acquisition of rival drugmaker Barr Pharmaceuticals.
The deal, reported to be worth USD7.5 billion (GBP3.8bn) continues a wave of consolidation among generic drugmakers, driven in part by an expected growth in the industry from impending brand-name patent expirations worth billions of dollars a year.
Israel-based Teva Pharmaceutical Industries said acquiring US-based Barr Pharmaceuticals will also expand its presence in US and other key markets.
As Barr shares jumped by double digits, analysts labelled the deal a great combination for both companies.
Barr’s chief executive, Bruce Downe, said: “This was the 12th attempt to acquire Barr, and the third by Teva. This is the right price, the right time and the right opportunity.”
Barr shareholders will receive USD39.90 in cash and 0.6272 of a Teva American Depositary Receipt for each share they own, a total of $66.50 per share. Teva also is offering to assume USD1.5 billion of Barr’s debt.
Shlomo Yanai, Teva’s CEO, said the two companies have minimal overlap in products and that Barr would add to his company’s products and research pipeline, particularly in women’s health.
Copyright PA Business 2008