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

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