Teva, Allergan sell off more drugs in quest for approval of generics deal
- Australia-based Mayne Pharma will buy 42 generic products from Teva in a $652 million deal, the company said Tuesday. With the acquisition, Mayne expects to move into the top 25 retail generic companies in the U.S. market.
- The acquired portfolio consists of 37 already approved products and 5 products filed with the Food and Drug Administration, including modified-release tablets, soft-gel capsules and transdermal patches.
- Teva is working to comply with antitrust laws in order to win U.S. approval for its $40.5 billion acquisition of Allergan’s generics portfolio.
For Teva, the sale is part of an ongoing plan to meet regulatory requirements and complete its $40.5 billion acquisition of Allergan’s generics business.
Teva announced it would acquire Allergan’s generics portfolio in July 2015, which would cement the Israeli company’s position as the world’s largest generic maker. Yet, antitrust concerns in both Europe and the U.S. have forced Teva to divest parts of its portfolio to secure approval.
European regulators gave the deal a green light in March after Teva agreed to divest Allergan’s generics business in the U.K. and Ireland, and to sell off 24 overlapping molecules in other E.U. countries. However, the Federal Trade Commission has yet to approve the deal.
Mayne Pharma, on the other hand, is aiming to increase its presence in the U.S. market and diversify its overall portfolio
“The acquisition transforms Mayne Pharma’s Generic Products Division into a top 25 player in the U.S. retail generics market, diversifying Mayne Pharma’s earnings across a broad range of products, therapeutic areas and technologies,” explained Scott Richards, Mayne’s CEO.
The influx of new products will increase Mayne’s projected sales for 2017 by an estimated $237 million. To pay for the deal, Mayne will raise $601 million through a share placement and stock split, reports Reuters.
The Mayne sale is just another step along the way for Teva, and should help push the deal with Allergan over the finish line. Both companies have said they expect the deal to close this month, but time is running out to meet that goal.