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July 12, 2001 11:32 a.m.
Teva Announces Cooperation with Mayne Nickless in Bid for F.H. Faulding & Co. Ltd

Jerusalem, Israel, July 12, 2001 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) announced today that it has reached an agreement with Mayne Nickless Limited, one of Australia's largest healthcare companies, regarding Mayne's offer for F.H. Faulding & Co. Ltd., an Australian healthcare and pharmaceutical company. Under Teva's agreement with Mayne, if Mayne is successful in its pending tender offer for Faulding shares, Teva will have an exclusive opportunity to purchase Faulding's injectables business.
Under the terms of a put and call option agreement between Mayne and Teva, if Mayne acquires 100% of Faulding, Teva will be granted an opportunity to conduct a due diligence examination relating to Faulding's injectables business. If Teva is satisfied with the outcome of this examination, it will have the right to acquire the injectables business for $365 million in cash. In addition to being subject to the success of Mayne's offer, the transaction would be subject to required anti-trust clearances as well as clearance under Australia's Foreign Acquisitions and Takeovers Act.
According to information publicly furnished by Faulding, the generic injectable products which it develops and manufactures are marketed to hospitals in Australia and in more than 70 countries, including countries in Asia, Europe, the Middle East, North America and South America. Its injectables product line is focused on the areas of oncology (anti-cancer), antibiotics and analgesics.
"The acquisition of Faulding's injectable business would complement Teva's injectable line and consolidate our position as a global leader in the area of generic injectable products," said Mr. Israel Makov, Chief Operating Officer for Teva. "The injectable business is highly synergistic with Teva's business, strengthens our portfolio of products and reinforces our leadership position as one of the world's premier providers of generic pharmaceuticals."
Teva Pharmaceutical Industries Ltd., headquartered in Israel, is among the top 40 pharmaceutical companies and among the largest generic pharmaceutical companies in the world. Over 85% of Teva's sales are outside Israel, mainly in North America and Europe. The Company develops, manufactures and markets generic branded human pharmaceuticals and active pharmaceutical ingredients.

Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause Teva's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include Teva's ability to successfully develop and commercialize additional pharmaceutical products, the introduction of competitive generic products, the impact of competition from brand-name companies that sell their own generic products or successfully extend the exclusivity period of their branded products, Teva's ability to rapidly integrate the operations of acquired businesses, the availability of product liability coverage in the current insurance market, the impact of pharmaceutical industry regulation and pending legislation that could affect the pharmaceutical industry, the difficulty of predicting U.S. Food and Drug Administration ("FDA") and other regulatory authority approvals, the regulatory environment and changes in the health policies and structure of various countries, acceptance and demand for new pharmaceutical products and new therapies, uncertainties regarding market acceptance of innovative products newly launched, currently being sold or in development, the impact of restructuring of clients, reliance on strategic alliances, exposure to product liability claims, dependence on patent and other protections for innovative products, fluctuations in currency, exchange and interest rates, operating results and other factors that are discussed in Teva's Annual Report on Form 20-F and its other filings with the U.S. Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.