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Israeli Pharma Giant Teva Buys Rivals; “1/6 Prescriptions in the US Will Be Teva,” CEO Says

Israel-based Teva Pharmaceutical Industries, the world’s largest generic medicines producer, has announced that it has entered into a definitive agreement to purchase Anda, the fourth-largest distributor of generic pharmaceuticals in the U.S., for $500 million. It is believed to be the largest-ever purchase by an Israeli company.

The acquisition comes one day after Teva completed its acquisition of Allergan’s generics business, Actavis Generics. Allergan received $33.43 billion in cash and $5.4 billion in Teva stock, according to a Teva statement.

Because of these acquisitions, Teva CEO Erez Vigodman told AFP, “one in six prescriptions in the U.S. [will be] Teva, one in six in the UK, one in eight in Germany.”

“Teva now has some of the best assets, people and capabilities in the industry. We have a clear responsibility to turn those strengths into meaningful results for patients, customers and the communities we serve, as well as for our shareholders,” Siggi Olafsson, the head of Teva’s Global Generic Medicines group, said in a statement.

Anda, which will continue to operate as a stand-alone business but report to Teva, distributes generic, brand, specialty, and over-the-counter pharmaceutical products from more than 300 manufacturers to retail independent and chain pharmacies, nursing homes, mail-order pharmacies, hospitals, clinics, and physician offices across the United States. Teva expects Anda to generate more than $1 billion over the course of 2016.

Teva acquisition of Allergan’s generic division will give the Israeli company a commercial presence across 80 markets.

“The acquisition of Actavis Generics comes at a time when Teva is stronger than ever — in both our generics and specialty businesses,” said Vigodman. “Through our acquisition of Actavis Generics, we are creating a new Teva with a strong foundation, significantly enhanced financial profile and more diversified revenue sources and profit streams backed by strong product development engines in both generics and specialty. This is a platform that is expected to generate multi-year top-line and bottom-line growth as well as significant cash flow.”

Teva’s reported 2015 net revenues amounted to $19.7 billion.

(via Israel21c)

[Photo: Hadas Parush / Flash90 ]