Sector News

Teva offers up concessions for quick EU review of Allergan deal

February 19, 2016
Life sciences

Teva may have just dodged a lengthy delay in closing its $40 billion-plus deal for Allergan’s generics business.

On Thursday, the drugmakers offered up concessions to EU regulators that they hoped would allay antitrust concerns over the transaction, which, if it closes, will bolster Teva’s position as the world’s leading generics maker. Following the submission, the body extended its deadline to rule on the deal until March 10, Bloomberg reports.

If the EU comes down in the companies’ favor, Teva and Allergan can sidestep a deeper probe into the deal that could take 90 business days. That would delay the end-of-March closing that the pair–and their investors–have been hoping for.

While the EU didn’t provide any details on the companies’ proposal, drugmakers can often win over regulators by promising to sell off units or change their behavior, Bloomberg notes.

“Both of these companies have been through this drill several times in the past and have a good understanding of how the EU will assess their overlaps, and therefore likely have a good perspective on what concessions will be needed to get clearance,” Bloomberg Intelligence analyst Jennifer Rie told the news service. “They will likely be fairly realistic in what they offer up and close to what the EU may want.”

Meanwhile, other deal-hungry knockoff makers could stand to benefit if Teva jettisons any of its assets. Top rival Mylan ($MYL)–which Teva pursued as a deal partner before jumping ship to snag Allergan’s generic offerings–could be among them, analysts have said.

But Mylan isn’t just sitting around waiting to pick up Teva’s castoffs. Last week, it inked a $7.2 billion deal for Sweden’s Meda, a tie-up that will further its ambitions in the OTC space.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

March 24, 2024

Johnson Matthey to sell its Medical Devices business for $700 million

Life sciences

Johnson Matthey Plc (JM; London) announced that it has signed a definitive agreement to sell 100% of its Medical Device Components business (MDC) to Montagu Private Equity (Montagu) for cash consideration of US$700 million (£550 million) on a cash free debt free basis.

March 24, 2024

Lonza acquires biologics manufacturing plant in California from Roche

Life sciences

Lonza AG (Basel, Switzerland) announced it has signed an agreement to acquire the Genentech large-scale biologics manufacturing site in Vacaville, Calif. from Roche (Basel, Switzerland) for $1.2 billion. The acquisition will significantly increase Lonza’s large-scale biologics manufacturing capacity.

March 24, 2024

Roquette to acquire IFF Pharma Solutions to boost global excipient presence

Life sciences

Roquette plans to acquire International Flavors & Fragrances (IFF) Pharma Solutions for an enterprise value of up to €2.85 billion (US$3.09 billion). With the acquisition set to close in the first half of 2025, the plant-based ingredient and pharmaceutical excipients supplier aims to reinforce its position in the pharmaceutical industry.

How can we help you?

We're easy to reach