Teva gets FTC approval for Allergan generics acquisition

JERUSALEM — The Federal Trade Commission has approved Teva’s proposed consent order for its planned acquisition of Allergan’s generics business, Actavis Generics, the company announced Tuesday. With the final regulatory hurdle behind it, the company said it expects the $40.5 billion transaction to complete next week.  

 

“We are pleased to have received all of the requisite regulatory approvals for our acquisition of Actavis Generics,” Teva president and CEO Erez Vigodman said. “This acquisition is a transformative step for Teva as we continue to claim a differentiated space in the global pharmaceutical industry. The generics industry is one of the most attractive industries in the world in terms of growth rates, profitability, return to investors and contribution to healthcare systems and societies around the world.”

 

Teva expects the acquisition to bring in $1.4 billion in operational and tax synergies by the end of 2019, with a 14% accretion in earnings per share in 2017 and 19% in 2019. From the time the deal closes to the end of 2019, Teva said it expects to generate more than $25 billion of free cash flow that it says will allow it to pursue other acquisitions to expand its presence in key growth markets. 

 

“The new Teva will be ideally positioned to realize the opportunities the global and U.S. generic markets offer,” Vigodman said. “The transaction strongly reinforces our strategy and yields very compelling economics. As a result, it opens a new set of possibilities for us in generics and specialty medicines.”