Teva sells UK and Ireland Actavis assets and operations
The buyer Accord Healthcare, a subsidiary of Intas Pharmaceuticals, will takeover the Barnstaple manufacturing plant
Teva Pharmaceutical Industries has agreed to sell assets and operations of Actavis Generics in the UK and Ireland to Accord Healthcare (a subsidiary of Intas Pharmaceuticals) for £603m, subject to final approval from the European Commission (EC).
The divestment of certain specified Actavis Generics assets and operations in the UK and Ireland was part of an undertaking that Teva made to the EC in the context of the review of the acquisition of Actavis Generics by Teva earlier this year.
The sale will include a portfolio of generic medicines plus a manufacturing plant in Barnstaple, England.
Teva retains a number of Actavis non-overlapping generic products plus certain specialty medicines and over-the-counter (OTC) products, which have been added to its existing operations.
'The sale has been a success for Teva in that we have satisfied the EU Commission’s sale requirements for these businesses, subject to their final approval, and agreed on a good price for the assets. With the assets that it will retain, Teva will create an even stronger operation in the UK and Ireland,' said Siggi Olafsson, President & CEO Global Generic Medicines Teva.
'Teva is the leading provider of medicines to the UK National Health Service, and the addition of the retained Actavis assets strengthens our ability to be the partner of choice in these countries while preserving strong and healthy competition in a competitive marketplace.'
The transaction is expected to close in the next three months.
Intas Pharmaceuticals says the deal offers a compelling strategic fit which provides Accord with increased access to UK and Irish retail and hospital markets.
It will expand the UK manufacturing presence of Intas with the addition of the high quality Barnstaple site and will help Intas become a top 20 generics player globally.
'This transaction represents a unique opportunity for Intas to build scale in UK & Ireland – adding to our market leading hospital franchise – and creates a strong platform for further European expansion,' said Binish Chudgar, Vice Chairman and MD of Intas.
Actavis UK & Ireland supplies generic pharmaceuticals in both the UK and Irish markets and is made up of selected assets and operations across the respective markets. The company employs over 600 staff.
'Together we have a great opportunity to build on the strong foundations of our respective organisations; we are excited to join the Intas/Accord family and look forward to an exciting future together,' said Sara Vincent, Actavis SVP UK and Ireland.
This transaction further demonstrates Accord’s commitment to UK manufacturing, adding to its recent significant investment to reinstate a facility closed by Sanofi Aventis in Newcastle.
The Barnstaple plant will become the company’s 4th UK site, ensuring Accord has one of the most extensive local supply chains to service pharmacies, hospitals and wholesalers across UK and Ireland and also into Europe.