Teva completes acquisition of Allergan’s generics business
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Israel-based pharmaceutical multinational Teva has completed the acquisition of the generic drugs business of Allergan (Actavis Generics), Teva Pharmaceutical Industries Ltd. and Allergan announced in a joint press release today. The deal is said to help strengthen the firm’s position in Hungary.
According to the press release, the acquisition reinforces Teva’s strategy, opening up new opportunities for the company in the field of generic and innovative drugs. Teva expects to make savings of some USD 1.4 billion annually by the end of 2019 as the result of synergies created through the acquisition, as well as through eliminating duplications and exploiting economies of scale.
As part of the transaction, Allergan received USD 33.43 bln in cash, as well as 100 million Teva shares.
In Hungary, Teva plays a leading role in patient care, besides its domestic manufacturing and R&D activities, according to Mika Käyhkö, chairman of the board of Teva Pharmaceutical Works Zrt. He stressed in the press release that the acquisition strengthens the company’s position in Hungary, enabling it to provide patients with a still broader range of therapeutic solutions of outstanding quality at affordable prices.
When announcing the transaction a year ago, Teva CEO Erez Vigodman projected that the merged company could expect EBITDA of USD 9.5 bln on turnover of USD 26 bln in 2016, as well as free cash flow of USD 6.5 bln.
In 2017, Teva plans the introduction of 1,500 generic drugs in total worldwide, the press release states. With the integration of Actavis Generics, the company ensures access to the world’s largest “medicine cabinet,” containing 1,800 drugs and a total of 16,000 preparations in total. With a presence in 80 countries, Teva is among the top three manufacturers on the pharmaceutical markets of 40 of these countries.
In over 20 years of operations in Hungary, Teva has invested some HUF 350 bln at its plants in Debrecen, Gödöllő and Sajóbábony, providing more than 3,000 jobs, the company says.
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