|View printer-friendly version|
|July 27, 2015 4:30 a.m.|
|Teva to Acquire Allergan Generics for $40.5 Billion Creating a Transformative Generics and Specialty Company Well Positioned to Win in Global Healthcare|
Acquisition Strongly Reinforces Teva's Strategy, Accelerates the Creation of Its New Business Model and Opens a New Set of Possibilities for the Company In Generics and Specialty
Opportunity to Further Transform the Global Generics Space through Best-In-Class Generics Pipeline, R&D Capabilities, Operational Network, Supply Chain, Global Commercial Deployment and Infrastructure
Robust Generics Platform to Support Future Strategic Investment in Specialty
Teva Will Be a Top 10
Enhanced Financial Profile with Strong, Diversified Revenues
Cost Synergies and Tax Savings of Approximately
This strategic acquisition brings together two leading generics businesses with complementary strengths, brands and cultures, providing patients with more affordable access to quality medicines, and creating significant financial benefits for Teva stockholders. The transaction will create a leader in the INN and branded generics industry with an overall product portfolio that leads the industry in terms of differentiation and durability and offers promising growth opportunities. The new Teva will further transform the global generics space through its best-in-class generics pipeline, R&D capabilities, operational network, supply chain, global commercial deployment and infrastructure to achieve greater efficiencies across the healthcare system and provide patients and consumers across the globe with better access to high quality affordable medicines.
When combined with Teva’s strong generics portfolio, Allergan Generics’ world-class generics pipeline, which holds a leading position in first-to-file opportunities in the U.S., will further enhance Teva’s goals of delivering the highest quality generic medicines at the most competitive prices and cultivating the best development pipeline in the industry. The resulting world-class product portfolio will be complemented by a significantly expanded and more efficient global footprint, including leadership positions and strengthened operations, sales and R&D platforms in attractive markets around the world. In addition, Teva expects to enhance its financial profile significantly with highly diversified revenues and profits and to unlock substantial, achievable cost synergies by eliminating duplication and inefficiencies on a global scale and capturing economies of scale. The result is a stronger, more competitive Teva, well positioned to thrive in an evolving global marketplace and to deliver enhanced value to its stockholders and other stakeholders.
“This transaction delivers on Teva’s strategic objectives in both generics and specialty,” said Erez Vigodman, President and CEO of Teva. “Through our acquisition of Allergan Generics, we will establish a strong foundation for long-term, sustainable growth, anchored by leading generics capabilities and a world-class late-stage pipeline that will accelerate our ability to build an exceptional portfolio of products – both in generics and specialty as well as the intersection of the two. Our respective portfolios of generic medicines and applications are highly complementary, providing Teva with high quality growth and earnings visibility, and the scale and resources to expand upon our specialty capabilities.”
Mr. Vigodman continued, “Given our in-depth knowledge and understanding
of Allergan’s world-class generics business, we are confident we can
realize the projected synergies and accretion inherent in this
acquisition for our stockholders and integrate Allergan Generics quickly
into Teva. With pro forma revenues of approximately
Mr. Vigodman concluded, “This acquisition comes at a time when Teva is stronger than ever, in both our generics and specialty businesses. Since the beginning of 2014, we have significantly strengthened the fundamentals of our company, improved generics profitability, solidified our key franchises and put in place robust engines for organic growth, laying the groundwork for transformative transactions such as this one. This transaction is another step forward on our roadmap to reinforce our already strong position. Teva and Allergan Generics share a commitment to innovation, quality, and improving the health of people around the world. Together, the employees of Teva and Allergan Generics will play a critical role ensuring we capture the full potential value resulting from this transaction. We look forward to delivering the benefits of this transaction to our stockholders, and better serving patients, customers and healthcare systems throughout the world.”
Substantial Financial Benefits
The transaction is expected to provide substantial financial benefits
for Teva including highly diversified revenues and profits, and
substantial cost synergies and tax savings. Teva expects
Teva expects to achieve cost synergies and tax savings of approximately
Teva expects the acquisition to generate strong free cash flow of
Enhances Teva’s Integrated Business Model through Unmatched R&D Capabilities and Technology
Teva will have the most advanced R&D capabilities in the generics
industry, directed at fostering innovation, with approximately 320
combined pending ANDAs in
Teva is well positioned to capture untapped opportunities for greater integration and innovation between generics and specialty assets with a single, powerful and differentiated offering. Teva will possess the capabilities and technologies to focus on complex generics, biosimilars and specialty products in our key therapeutic areas, delivering better value and accessibility, while improving adherence and compliance. Allergan Generics’ strategically focused R&D engine is built on novel compounds in specialty and primary care markets where there is significant unmet medical need. With its existing integration of generics and specialty, Teva will be able to generate a robust pipeline of high-value medicines, with an emphasis on complex and branded generics, focused on the needs of patients and the people who care for them.
Teva’s generics R&D is closely integrated with its extensive clinical expertise in developing specialty products. This transaction will afford Teva unrivaled speed and flexibility, creating a company well positioned to transform the growing global generics space in markets throughout the world, delivering even greater value to patients and stockholders, as well as to healthcare systems around the world, and improving adherence and health outcomes in general. The result is a company well positioned to ensure product development activities that support sustainable long-term organic growth.
Bolsters Promising Specialty Pipeline
Teva has multiple existing specialty pharmaceuticals at various stages of development, which are expected to drive sustainable growth in its specialty business. In particular, Teva is committed to building global leadership in its core specialty franchise including in central nervous system, pain and migraine and respiratory. The enhancements that will come from scale and broader capabilities through the acquisition of Allergan Generics will provide the resources to further enhance investment in these franchises. Building on the broadest portfolio of products and technologies in the generics industry, and on a leading position in specialty, Teva will continue to strengthen its pipeline by developing novel products based on known molecules that bring unique value to patients.
Increases Global Commercial Reach
Teva’s acquisition of Allergan Generics will improve international commercial opportunities by positioning Teva to significantly enhance the global scale of its sales and R&D platforms. Together, Teva and Allergan Generics will have a commercial presence across 100 markets, including a top three leadership position in over 40 markets.
The acquisition will help eliminate inefficiencies and duplications in the global generics space and will allow Teva to better focus resources and efforts in complex generics, biosimilars and specialty products in key therapeutic areas. This scale and breadth of operations will provide Teva with an even more efficient, flexible and competitive global platform with industry-leading go-to-market capabilities.
Shared Commitment to Safety and Quality
Teva and Allergan Generics are committed to adherence to all applicable regulatory requirements and boast the highest industry standards, dedicated to defining and implementing patient safety policies and systems, as well as ensuring compliance with all relevant global and local regulations. Importantly, this acquisition will improve the standard of quality for employees, both companies’ customers and the communities in which Teva and Allergan Generics operate.
Employees to Benefit from Greater Long-Term Opportunities
Allergan Generics is a natural fit with Teva, and employees will benefit from substantial opportunities for growth and development as part of a stronger, industry-leading company. The two companies share a close cultural and strategic fit, and Teva is focused on leveraging both organizations’ competencies and talent.
Financing and Approvals
Teva is acquiring Allergan Generics on a cash free and debt free basis.
The transaction consideration of
The transaction is subject to the expiration or termination of the
applicable waiting periods under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, as well as other customary closing
conditions. The transaction does not require a Teva or
Conference Call and Webcast Information
Teva will host a conference call and live webcast on
In order to participate, please dial the following numbers (at least 10
minutes before the scheduled start time):
A live webcast of the call will also be available on Teva's website at: www.tevapharm.com. Please log in at least 10 minutes prior to the conference call in order to download the applicable audio software.
Following the conclusion of the call, a replay of the webcast will be
available within 24 hours on the Company's website. The replay can also
be accessed until
Safe Harbor Statement
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which
are based on Teva’s current beliefs and expectations and involve a
number of assumptions, known and unknown risks and uncertainties that
change over time and could cause future results, performance or
achievements to differ materially from the results, performance or
achievements expressed or implied by such forward-looking statements.
These assumptions, known and unknown risks and uncertainties include,
but are not limited to, those discussed in our Annual Report on Form
20-F for the year ended
This document may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at http://ir.tevapharm.com.