Sector News

Teva mulls $7B stock offering to help fund Allergan generics buy

October 21, 2015
Life sciences

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

comments closed

Related News

November 28, 2021

Founder-led biotech is making space for ideas—and diverse leaders—where it didn’t exist before

Life sciences

Decades ago, the founder-led biotech was rare and considered the tougher path to follow. Now there is a trend of founder-led biotechs that have risen in prominence in recent years, going from startup to well known with lightning speed. Scientists-turned C-suite occupants know their technology inside out. They’ve got credibility both at the bench working with their research teams and in the boardrooms selling their future products.

November 28, 2021

Pfizer to become $100B behemoth next year thanks to COVID-19 drug and vaccine: analyst

Life sciences

Pfizer’s revenue could reach $101.3 billion in 2022, with major contributions coming from the company’s BioNTech-partnered COVID vaccine and an antiviral therapeutic that has shown stellar clinical data, SVB Leerink analyst Geoffrey Porges projected in a Monday note to clients.

November 28, 2021

GlaxoSmithKline takes aim at sick pay access inequities with microgrant program and new campaign

Life sciences

In a survey commissioned by GlaxoSmithKline’s consumer health division of 2,000 working people in the U.S., almost 70% admitted to clocking in while sick, often because they couldn’t afford to lose a day’s pay. Black and Latina women were 10% more likely than white women to shun taking sick time for fear of fallout from their boss, according to the company’s 2021 Temperature Check Report.

Send this to a friend