Teva’s $40.5 billion deal for Allergan’s generics company is going to help Allergan pay down much of its dealmaking debt.
But in the meantime, the Israeli pharma needs some acquisition money of its own–and it’s reportedly planning to raise as much as $7 billion this year to help fund the transaction.
The generics giant will drum up the funds through a share sale, Bloomberg’s sources say. It’s rounded up four banks to underwrite the offering, which it may launch as soon as November. It may also choose to sell a smaller number of shares to keep from diluting its existing shares, and take on debt to round out the financing.
Teva and Allergan struck their accord back in July, with Teva agreeing to fork over cash and stock to maintain its place at the top of the generics market. The company arranged $33.75 billion in bridge financing with 10 banks, including a senior unsecured loan of as much as $27 billion and about $6.75 billion in equity bridge financing, the news service notes.
And Teva’s not alone, either. Pharma’s M&A wave has seen multiple companies issue sky-high amounts of debt to help fund their pickups. Allergan itself will be using the money it gets from Teva to pare down the debt from its formative $66 billion merger–Allergan plus Actavis–earlier this year.
Meanwhile, Teva and Allergan are expecting to close their deal in the first quarter of next year; in a bid for antitrust approval, Teva is considering selling off a portfolio of drugs in the Middle East that it acquired with Allergan’s other products, Bloomberg reports.
By Carly Helfand
Source: Fierce Pharma
Giovanni Caforio, the former CEO of Bristol Myers Squibb, is set to become the next board chairman of Novartis, which on Tuesday proposed the pharmaceutical industry veteran as its pick to replace Joerg Reinhardt in the role next year. Reinhardt has served as Novartis’ chair since 2013 and plans to retire when his 12-year term ends in 2025.
GE HealthCare has raised the curtain on two ultrasound systems equipped with artificial intelligence programs designed to assist in diagnosing conditions in women’s health, including obstetric exams. The Voluson Signature 20 and 18 imaging systems include AI tools capable of automatically identifying and annotating measurements of fetal anatomy.
Scientists from the University of Edinburgh’s School of Chemistry have revealed a new sustainable method of manufacturing complex molecules that could reduce waste produced during drug production. The method published in Nature Chemistry could help to prevent severe side effects caused by drugs that can exist as enantiomers.
