The U.S. Federal Trade Commission said that it has given the approval for the purchase of Allergan Plc's generics business by Teva Pharmaceutical Industries Ltd. However the approval came with a number of conditions for Teva Pharmaceutical Industries Ltd, the prime among them being the agreement to allow the divesting of 79 of their generic drugs to rival firms, the U.S. antitrust authority added.
While Allergan is now free to pursue its focus of the branded drugs business, the $40.5 billion deal has enabled Teva to solidify its position as the world's No. 1 maker of generics. The announcement of the deal was made in July last year and it took the companies exactly a year’s time to convince the US antitrust authority.
In what would be the largest ever drug divestiture order in an FTC pharmaceutical merger case, rights and assets related to the 79 pharmaceutical products that are currently owned by Teva will be sold to 11 rival firms. This was announced by the commission said in a statement.
The issue of generic drugs and its pricing has been a hot topic of discussions in the past year or so as a number of drugmakers have sharply raised prices on such medications since there are few competitors around to challenge the pricing. Generics drugs are those drugs that have exceeded their patents and are free to be manufactured by anyone and are typically a source of healthcare savings.
“Millions of Americans rely daily on generic drugs to treat a wide range of illnesses,” Debbie Feinstein, director of the FTC’s Bureau of Competition, said in the statement.
“The FTC’s settlement safeguards the competitive availability of these medications for patients across the country who depend on them,” she added.
The statement from the commission further said that the drug patents that would be sold by Teva includes treatments for a wide variety of diseases and conditions ssuch as anesthetics, antibiotics, weight-loss drugs and oral contraceptives.
According to the FTC, Dr. Reddy’s Laboratories Ltd, Sagent Pharmaceuticals Inc, Cipla Ltd, Mayne Pharma Group Ltd, Impax Laboratories Inc, Zydus Worldwide, Mikah Pharma, Aurobindo Pharma, Prasco LLC, 3M Co and Perrigo Pharma International are the acquirers of the divested drugs of Teva.
Since the early 2014, there have been a number of deals in the pharmaceutical industry where smaller rival companies have been gobbled up by large rivals, tie ups between insurers and consolidation among makers of generic medicines. This latest deal is in line with the unprecedented wave of deals in the healthcare sector since then.
Teva expects to hold the leading position as the initial market entrant for around 115 pending U.S. generic drug applications and said that the combined company will have about 338 product registrations pending U.S. regulatory approval. The company expects to close the transaction next week.
The deal would raise adjusted earnings by 14 percent next year while overall it will generate $1.4 billion in operational and tax savings by the end of 2019, Chief Executive Erez Vigodam said in a statement.
(Source:www.reuters.com)
While Allergan is now free to pursue its focus of the branded drugs business, the $40.5 billion deal has enabled Teva to solidify its position as the world's No. 1 maker of generics. The announcement of the deal was made in July last year and it took the companies exactly a year’s time to convince the US antitrust authority.
In what would be the largest ever drug divestiture order in an FTC pharmaceutical merger case, rights and assets related to the 79 pharmaceutical products that are currently owned by Teva will be sold to 11 rival firms. This was announced by the commission said in a statement.
The issue of generic drugs and its pricing has been a hot topic of discussions in the past year or so as a number of drugmakers have sharply raised prices on such medications since there are few competitors around to challenge the pricing. Generics drugs are those drugs that have exceeded their patents and are free to be manufactured by anyone and are typically a source of healthcare savings.
“Millions of Americans rely daily on generic drugs to treat a wide range of illnesses,” Debbie Feinstein, director of the FTC’s Bureau of Competition, said in the statement.
“The FTC’s settlement safeguards the competitive availability of these medications for patients across the country who depend on them,” she added.
The statement from the commission further said that the drug patents that would be sold by Teva includes treatments for a wide variety of diseases and conditions ssuch as anesthetics, antibiotics, weight-loss drugs and oral contraceptives.
According to the FTC, Dr. Reddy’s Laboratories Ltd, Sagent Pharmaceuticals Inc, Cipla Ltd, Mayne Pharma Group Ltd, Impax Laboratories Inc, Zydus Worldwide, Mikah Pharma, Aurobindo Pharma, Prasco LLC, 3M Co and Perrigo Pharma International are the acquirers of the divested drugs of Teva.
Since the early 2014, there have been a number of deals in the pharmaceutical industry where smaller rival companies have been gobbled up by large rivals, tie ups between insurers and consolidation among makers of generic medicines. This latest deal is in line with the unprecedented wave of deals in the healthcare sector since then.
Teva expects to hold the leading position as the initial market entrant for around 115 pending U.S. generic drug applications and said that the combined company will have about 338 product registrations pending U.S. regulatory approval. The company expects to close the transaction next week.
The deal would raise adjusted earnings by 14 percent next year while overall it will generate $1.4 billion in operational and tax savings by the end of 2019, Chief Executive Erez Vigodam said in a statement.
(Source:www.reuters.com)
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