Teva's $40.5 billion generics deal with Allergan hits FTC snag
- Teva's $40.5 billion deal for Allergan's generics portfolio will be delayed, likely until June due to ongoing regulatory review by the U.S. Federal Trade Commission, the company revealed in the 6-K filing with the SEC. The deal had previously been expected to close around the end of the first quarter.
- Last week, the European Commission approved the deal after Teva agreed to a number of divestitures, including shedding Allergan's generics business in the U.K. and Ireland.
- While significant progress has been made, the delay could indicate lengthier negotiations over potential divestments needed to win approval.
The acquisition of Allergan's generic portfolio would further reinforceTeva's already-strong position in the global generics market. Almost half of the Israeli drugmaker's revenue came from generics sales in 2015, which nearly reached $10 billion.
"Teva now anticipates that completing the acquisition could take as long as June 2016, based upon its current estimate of the timing to obtain clearance from the United States Federal Trade Commission," the company said in its SEC filing.
In winning approval from the EC, Teva agreed to divest Allergan's generics business in the U.K. and Ireland while trimming its own existing business in Iceland. Outside of those three countries, "certain overlapping molecules" in 24 European countries will be sold off.
It is unclear what Teva might need to give up in order to win FTC approval. The company said it would continue to cooperate with the regulator.
- Wall Street Journal Teva Acquisition of Allergan Generics Unit Delayed
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