Dive Brief:
- Teva Pharmaceuticals said Thursday it plans to sell its Actavis Generics assets and operations to Accord Healthcare in the UK and Ireland for $762 million.
- The sale is part of a slew of sales the Israeli drugmaker has agreed to make as part of its $40.5 billion acquisition of Allergan’s generic pharmaceutical business.
- The Accord deal is expected to be close within 3 months, but is subject to final approval by the European Commission.
Dive Insight:
Teva’s acquisition of Allergan’s generics unit dragged on for a year, weighed down by regulators’ concerns over antitrust issues, before the company began to sell off hundreds of millions of assets to comply with the Federal Trade Commission requirements over the Allergan generics acquisition. While agreeing to sell 79 drug assets, Tevas will maintain a drug portfolio of 11 firms.
"The (Accord) 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," said Sigil Olaffsson, president and CEO global generic medicines for Teva in a statement. "With the assets that it will retain, Teva will create an even stronger operation in the UK and Ireland."
The deal with Accord includes a portfolio of generic medicines plus a manufacturing plant in Barnstaple, England, Teva said. The company said it also maintained several existing Actavis non-overlapping generic products, plus specialty medicine and over the counter products. “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,” Olaffsson said.
Teva already has sold dozens of products it owns to an array of drugmakers to comply with the FTC order.
Indian drugmaker Dr. Reddy’s will buy eight generic drugs from Teva and Allergan in an $350 million deal Australian-based Mayne Pharma will buy 42 generic products from Teva in a $652 million deal. With the acquisition, Mayne expects to be move into the top 25 retail generic companies in the U.S. market.
In August, Teva said it will pay Allergan $500 million to acquire the latter’s wholesale distributor, Anda. That move would willow Teva to consolidate its supply chain in the U.S. since Anda is the fourth largest generics distributor in the country, Teva said.