Sector News

Reuters: Teva set to win EU okay for $40.5 billion Allergan deal

March 11, 2016
Life sciences

Teva Pharmaceutical Industries is expected to win EU antitrust approval for its $40.5 billion bid for Allergan’s generics unit after agreeing to sell off some of its products to appease regulators, three people familiar with the matter said on Wednesday.

Teva, the world’s biggest generic drugsmaker, will divest some drugs already on the market and others in the pipeline to address competition concerns by the European Commission, the people said. The package includes products from both Teva and Allergan.

Other sources had previously told Reuters that assets worth about $1 billion in the United States, Europe and the Middle East would be sold in order to secure the green light from regulators.

Teva will gain bigger economies of scale, a crucial element in the low-margin generic drugs business, with the deal, the largest in Israel’s corporate history.

The Commission, which is scheduled to decide on the case on Thursday, and Teva declined to comment.

The deal, which requires U.S. approval, has triggered a warning from the American Antitrust Institute that a more concentrated generic market usually comes with higher prices. The think-tank also said divestments may not be enough to ensure competition in the market in a letter to the U.S. Federal Trade Commission in January.

Dublin-based Botox-maker Allergan in turn is to be acquired by Pfizer Inc (PFE.N) in a $160 billion deal creating the world’s largest drugmaker.

By Foo Yun Chee

Source: Reuters

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach