Acquisition Reinforces Teva's Strategy and Opens New Possibilities
for the Company in Generics and Specialty; Serving 250 Million People,
Every Day
JERUSALEM--(BUSINESS WIRE)--Aug. 2, 2016--
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) and Allergan
plc (NYSE: AGN) today announced that Teva has completed its acquisition
of Allergan’s generics business (“Actavis Generics”).
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This strategic acquisition brings together two leading generics
businesses with complementary strengths, R&D capabilities, product
pipelines and portfolios, geographical footprints, operational networks
and cultures. The result is a stronger, more competitive Teva, well
positioned to thrive in an evolving global marketplace, to realize the
opportunities the very attractive global and U.S. generics markets
offer, and to deliver the highest-quality generic medicines at the most
competitive prices, unlocking value to patients, healthcare systems and
investors around the world.
“The acquisition of Actavis Generics comes at a time when Teva is
stronger than ever—in both our generics and specialty businesses,”
said Erez Vigodman, President and CEO, Teva. “Through our acquisition of
Actavis Generics, we are creating a new Teva with a strong foundation,
significantly enhanced financial profile and more diversified revenue
sources and profit streams backed by strong product development engines
in both generics and specialty. This is a platform that is expected to
generate multi-year top-line and bottom-line growth as well as
significant cash flow.”
Mr. Vigodman continued, “We are confident that we can realize the
projected synergies and accretion inherent in this acquisition for our
stockholders and quickly integrate Actavis Generics into Teva.
Furthermore, as a result of our strengthened financial profile following
this transaction, we will be even better positioned to reap the benefits
of Teva’s R&D capabilities to support top-line growth and expand our
portfolio across the business. The strong, combined company cash flow
will allow for rapid deleveraging and give us the ability to continue
capital allocation, with a focus on bolstering our specialty pipeline
and product portfolio as well as strengthening shareholder returns.”
With the acquisition, Teva now has approximately 338 product
registrations pending FDA approval and holds the leading position in
first-to-file opportunities with approximately 115 pending ANDAs in the
U.S. In Europe, after divestitures; Teva will have a pipeline capable of
over 5000 launches across the region. In Teva growth markets including,
Asia, Africa, Latin America, Middle East, Russia and CIS, there are now
approximately 600 pending product approvals. Overall, Teva is planning
for 1,500 generic launches globally in 2017.
Teva’s products generated approximately $215 billion in savings in the
last decade to the U.S. healthcare system; this number will continue to
increase and even accelerate as a result of the acquisition.
“Teva now has some of the best assets, people and capabilities in the
industry. We have a clear responsibility to turn those strengths into
meaningful results for patients, customers and the communities we serve,
as well as for our shareholders,” said Siggi Olafsson, President and
CEO, Global Generic Medicines, Teva. “We are pleased to welcome our
talented new colleagues from Actavis Generics, including many
first-class scientists and business leaders.”
Increased Global Commercial Reach
Teva’s acquisition of Actavis Generics improves international commercial
opportunities and significantly enhances the global scale of its sales
and R&D platforms. Offering access to the world’s largest drug
cabinet—with more than 1,800 medicines and 16,000 products—Teva now has
a commercial presence across 80 markets, including a top-three
leadership position in over 40 markets and global leadership in all key
global markets.
Financial Highlights
Teva expects to achieve cost synergies and tax savings of approximately
$1.4 billion annually by the end of 2019, by eliminating duplication and
inefficiencies on a global scale and capturing economies of scale.
Allergan plc received $33.43 billion in cash and approximately 100
million Teva shares.
Strong Combined Global Leadership Team and Employees with Deep
Experience across the Business
The two companies share a close cultural and strategic fit, and Teva is
focused on leveraging both organizations’ competencies and talent. The
combined company's expanded senior management team is comprised of
leaders from both Teva and Actavis. It is structured to leverage the
strong talent from both organizations to ensure that the new company
capitalizes on its expanded global commercial footprint and Teva's
continued strength as a world leader in generics. With this structure in
place beginning on Day One, the company is immediately positioned to
maximize growth across all of its global businesses.
Operational Integration and Readiness
Since the acquisition agreement was announced in July 2015, integration
teams at Teva and Actavis Generics have worked diligently to plan for
integration of the two companies in order to ensure that the combined
company is fully operational immediately upon the closing of the
transaction. As a result of these actions, Teva will begin to capitalize
on the benefits offered by the acquisition of Actavis Generics starting
immediately.
“Our ability to close a transaction of this size successfully and be
operational on ‘Day One’ is a true testament to the dedication of the
integration planning teams at both companies,” said Richard Daniell,
Teva Chief Integration Officer. “Because business continuity was a
primary objective throughout the integration process, our leaders and
colleagues are in a position to quickly build on Teva’s solid financial
foundation, operational discipline and diverse product base to continue
to improve our performance.”
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading
global pharmaceutical company that delivers high-quality,
patient-centric healthcare solutions used by millions of patients every
day. Headquartered in Israel, Teva is the world’s largest generic
medicines producer, leveraging its portfolio of more than 1,800
molecules to produce a wide range of generic products in nearly every
therapeutic area. In specialty medicines, Teva has a world-leading
position in innovative treatments for disorders of the central nervous
system, including pain, as well as a strong portfolio of respiratory
products. Teva integrates its generics and specialty capabilities in its
global research and development division to create new ways of
addressing unmet patient needs by combining drug development
capabilities with devices, services and technologies. Teva's net
revenues in 2015 amounted to $19.7 billion. For more information, visit www.tevapharm.com.
Teva's Safe Harbor Statement under the U. S. Private Securities
Litigation Reform Act of 1995:
This release contains forward-looking statements, which are based on
management’s current beliefs and expectations and involve a number of
known and unknown risks and uncertainties that could cause our 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 risks relating to: our ability to
develop and commercialize additional pharmaceutical products;
competition for our specialty products, especially Copaxone® (which
faces competition from orally-administered alternatives and a generic
version); our ability to consummate the acquisition of Allergan plc’s
worldwide generic pharmaceuticals business (“Actavis Generics”) and to
realize the anticipated benefits of such acquisition (and the timing of
realizing such benefits); the fact that following the consummation of
the Actavis Generics acquisition, we will be dependent to a much larger
extent than previously on our generic pharmaceutical business; potential
restrictions on our ability to engage in additional transactions or
incur additional indebtedness as a result of the substantial amount of
debt we will incur to finance the Actavis Generics acquisition; the fact
that for a period of time following the consummation of the Actavis
Generics acquisition, we will have significantly less cash on hand than
previously, which could adversely affect our ability to grow; the
possibility of material fines, penalties and other sanctions and other
adverse consequences arising out of our ongoing FCPA investigations and
related matters; our ability to achieve expected results from
investments in our pipeline of specialty and other products; our ability
to identify and successfully bid for suitable acquisition targets or
licensing opportunities, or to consummate and integrate acquisitions;
the extent to which any manufacturing or quality control problems damage
our reputation for quality production and require costly remediation;
increased government scrutiny in both the U.S. and Europe of our patent
settlement agreements; our exposure to currency fluctuations and
restrictions as well as credit risks; the effectiveness of our patents,
confidentiality agreements and other measures to protect the
intellectual property rights of our specialty medicines; the effects of
reforms in healthcare regulation and pharmaceutical pricing,
reimbursement and coverage; competition for our generic products, both
from other pharmaceutical companies and as a result of increased
governmental pricing pressures; governmental investigations into sales
and marketing practices, particularly for our specialty pharmaceutical
products; adverse effects of political or economic instability, major
hostilities or acts of terrorism on our significant worldwide
operations; interruptions in our supply chain or problems with internal
or third-party information technology systems that adversely affect our
complex manufacturing processes; significant disruptions of our
information technology systems or breaches of our data security;
competition for our specialty pharmaceutical businesses from companies
with greater resources and capabilities; the impact of continuing
consolidation of our distributors and customers; decreased opportunities
to obtain U.S. market exclusivity for significant new generic products;
potential liability in the U.S., Europe and other markets for sales of
generic products prior to a final resolution of outstanding patent
litigation; our potential exposure to product liability claims that are
not covered by insurance; any failure to recruit or retain key
personnel, or to attract additional executive and managerial talent; any
failures to comply with complex Medicare and Medicaid reporting and
payment obligations; significant impairment charges relating to
intangible assets, goodwill and property, plant and equipment; the
effects of increased leverage and our resulting reliance on access to
the capital markets; potentially significant increases in tax
liabilities; the effect on our overall effective tax rate of the
termination or expiration of governmental programs or tax benefits, or
of a change in our business; variations in patent laws that may
adversely affect our ability to manufacture our products in the most
efficient manner; environmental risks; and other factors that are
discussed in our Annual Report on Form 20-F for the year ended December
31, 2015 and in our other filings with the U.S. Securities and Exchange
Commission (the "SEC"). Forward-looking statements speak only as of the
date on which they are made and we assume no obligation to update or
revise any forward-looking statements or other information, whether as a
result of new information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160802006666/en/
Source: Teva Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd.
IR Contacts:
Kevin C.
Mannix, United States, 215-591-8912
Ran Meir, United
States, 215-591-3033
Tomer Amitai, Israel, 972 (3) 926-7656
or
PR
Contacts:
Iris Beck Codner, Israel, 972 (3) 926-7687
Denise
Bradley, United States, 215-591-8974