Teva's acquisition of Barr will strengthen US market position
Israel-based global generics company Teva Pharmaceutical Industries is to acquire Barr Pharmaceuticals, the world\'s fourth largest generics producer, in a deal valued at US$7.46bn (Euro 4.72bn) plus the assumption of net debt of approximately $1.5bn (€950m).
Israel-based global generics company Teva Pharmaceutical Industries is to acquire Barr Pharmaceuticals, the world's fourth largest generics producer, in a deal valued at US$7.46bn (Euro 4.72bn) plus the assumption of net debt of approximately $1.5bn ( €950m).
The transaction is expected to close in late 2008 and will further enhance Teva's leadership position in the US as well as significantly strengthening its position in key European and Central and Eastern European markets.
Currently more than 80% of Teva's sales are in North America and western Europe. The combined company will operate directly in more than 60 countries and employ approximately 37,000 people worldwide.
"The acquisition of Barr will elevate Teva's market leadership to a new level. The combination of our two companies provides an outstanding opportunity strategically and economically," said Shlomo Yanai, president and ceo of Teva. "It will enhance our market share and leadership position in the US and key global markets, further strengthen our portfolio and pipeline and allow us to exceed our goals for 2012."
Teva and Barr's product offerings are highly complementary, and the deal will extend Teva's product portfolio and pipeline into new and attractive product categories. The combined company will have more than 500 currently marketed products; more than 200 ANDAs pending with the FDA with annual brand sales in excess of $120bn ( €75.8bn), including approximately 70 first to file Paragraph IV challenges; and approximately 3,700 product registrations pending with various regulatory authorities worldwide, primarily in Europe.
The transaction also bolsters Teva's speciality pharmaceutical platform through the addition of Barr's substantial women's health portfolio to Teva's respiratory franchise.
Bruce Downey, chairman and ceo of Barr, said: "This transaction will enable Teva to capitalise on Barr's portfolio of unique generic and proprietary products, benefit from our capabilities in biologics, and expand its presence in important Central and Eastern European markets."
Operational efficiencies, increased scale and geographic scope are expected to generate annual cost saving of at least $300m ( €190m) within three years and will continue to provide additional cost savings well beyond 2011, according to Teva.