Teva Will Acquire Generics Rival Barr | Chemical & Engineering News
Volume 86 Issue 30 | p. 27 | Concentrates
Issue Date: July 28, 2008

Teva Will Acquire Generics Rival Barr

Department: Business

Jerusalem-based Teva Pharmaceutical Industries, the world's largest generic drug company, has agreed to purchase Barr Pharmaceuticals of Montvale, N.J., the fourth largest generics firm, for $7.5 billion plus the assumption of $1.5 billion in debt. Expected to close later this year, the deal will create a company with pro forma sales of $11.9 billion and 37,000 employees in 60 countries. Teva and Barr primarily are generics firms, but both also have proprietary drugs. Copaxone, an immunomodulator therapy for relapsing-remitting multiple sclerosis, represents more than 50% of Teva's U.S. sales. "The deal reflects growing opportunities in emerging markets," says Eric Snyder, an analyst with Mehta Partners. He notes that the acquisition follows Daiichi Sankyo's $4.6 billion bid for India's Ranbaxy Laboratories last month, and Barr's acquisition of Pliva, a Croatian generics firm, for $2.2 billion in 2006. Meanwhile, the board of Prague-based generics firm Zentiva has recommended that shareholders not accept a $2.5 billion takeover offer from Sanofi-Aventis, claiming that it undervalues the company.

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