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Actavis bought by Israeli pharmaceutical company

Teva Pharmaceuticals to acquire Allergan Generics for $40 billion. Actavis’ parent company Allergan plc, signed agreement with Teva which will be finalised in 2016.

Teva Pharmaceutical Industries Ltd announced that it has signed a definitive agreement with Allergan plc, the parent company of Actavis. They have acquired Allergan Generics, in a transaction valued at $40.5 billion. Upon closing, Allergan will receive $33.75 billion in cash and shares of Teva valued today at $6.75 billion.

The transaction was unanimously approved by the Boards of Directors of Teva and Allergan and is expected to close early 2016. Teva is the largest generic pharmaceuticals producer in the world, with an estimated worth of $60 billion USD.

Under the agreement, Teva will receive the Dublin-based company’s Actavis global generics business, including commercial units, manufacturing operations and R&D units related to generics. It also will get the international over-the-counter (OTC) commercial unit, not including eye care products.

“This transaction delivers on Teva’s strategic objectives in both generics and specialty,” said Teva president and CEO Erez Vigodman.

“Through our acquisition of Allergan Generics, we will establish a strong foundation for long-term sustainable growth, anchored by leading generics capabilities and a world-class late-stage pipeline that will accelerate our ability to build an exceptional portfolio of products – both in generics and specialty, as well as the intersection of the two,” he added.

Teva estimates that the deal will put it in the top 10 of global pharmaceutical companies and make $1.4 billion in tax and cost savings in the second and third year once the deal closes.

The acquisition is the latest in an unprecedented wave of healthcare deals since the start of 2014, stretching from large drugmakers buying up smaller rivals to consolidation among makers of generic medicines and tieups between insurers.

However, the deal leaves Activis employees in Malta uncertain of their future. Actavis closed its research and development unit two years ago after the company was bought by American firm Watson. However it remains unclear whether or not the deal will lead to the loss of jobs in Malta. 

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