Teva Pharma (TEVA) to Acquire Allergan's (AGN) Anda Distribution Business in $500M Deal
- World stocks at 1-month high as bond yields soften
- Johnson & Johnson (JNJ) Tops Q3 EPS by 24c, Raises FY Guidance
- Walmart (WMT) Added to Goldman's Buy Conviction List, Target (TGT) Removed
- New Product Launches Signal Apple (AAPL) is Navigating Supply Chain Disruptions Better Than Other Companies Says Analyst
- Oil prices rise to three-year high on back of supply deficit forecasts
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Allergan plc (NYSE: AGN), a global pharmaceutical company, today announced that it has entered into a definitive agreement under which Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) will acquire Allergan's Anda, Inc. distribution business for $500 million.
Anda distributes generic, brand, specialty and Over-the-Counter pharmaceutical products from more than 300 manufacturers to retail independent and chain pharmacies, nursing homes, mail order pharmacies, hospitals, clinics and physician offices across the United States.
"The sale of Anda to Teva Pharmaceuticals is a strategic transaction that benefits Allergan and the employees and customers of the Anda business," said Brent Saunders, CEO and President, Allergan. "For Allergan, this divestiture continues our evolution as a focused branded Growth Pharma leader, powered by growing leadership positions across our seven therapeutic areas, developing and bringing to market innovative therapies from our industry leading pipeline, simplified operating structure and adding new development programs through our Open Science R&D model."
"The Anda team has played a supporting role in launching brand and generic products, such as Allergan's Vraylar™ and Liletta® and Actavis' generic Crestor®. Teva is one of Anda's most important suppliers, enhancing the significant strategic fit of Anda within Teva's business. We are thrilled for the employees of the Anda business, as their talents and contributions will continue to be a critical strategic element of the most important generic pharmaceuticals company in the United States," added Saunders.
Until the transaction is completed, Allergan will continue to operate Anda in a business-as-usual mode, provide full support to manage the business, introduce new products and maximize its partnerships with customers.
Beginning with its second quarter 2016 earnings report, Allergan will report its Anda business as discontinued operations. For the second quarter of 2016, Anda is expected to contribute approximately $375 million in net revenues excluding sales of Allergan's branded products and approximately $0.05 in earnings per share (EPS). For the full year 2016, Anda is expected to contribute approximately $1.5 billion in third-party net revenue and approximately $0.15 in EPS.
Additional information related to the sale of the Anda distribution business can be found in Allergan's Investor FAQs, available at http://www.allergan.com/investors/investors-faqs.
Completion of the transaction is subject to customary conditions, including antitrust clearance in the U.S. The transaction is expected to close in the second half of 2016.
Covington & Burling LLP is serving as Allergan's lead legal advisor. Weil Gotshal & Manges LLP is advising Allergan on antitrust matters.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Carrier Global (CARR) Acquires Cavius
- Tupperware Brands (TUP) to Sell its House of Fuller Beauty Business
- Iridium Communications (IRDM) Reports In-Line Q3 EPS; Expects FY EBITDA $375M
Create E-mail Alert Related CategoriesCorporate News, Hot Corp. News, Management Comments, Mergers and Acquisitions, Spinoffs
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!