Teva Pharmaceutical Industries, the world’s largest generic medicines producer, has announced that it has entered into a definitive agreement to purchase Anda, the fourth largest distributor of generic pharmaceuticals in the US, for $500 million.
The mega acquisition comes one day after Teva completed its acquisition of Allergan’s generics business, Actavis Generics. Allergan received $33.43 billion in cash and $5.4 billion in Teva stock, according to a Teva statement.
“Teva now has some of the best assets, people and capabilities in the industry. We have a clear responsibility to turn those strengths into meaningful results for patients, customers and the communities we serve, as well as for our shareholders,” said Siggi Olafsson, President and CEO, Global Generic Medicines, Teva.
“One in six prescriptions in the US will be Teva, one in six in the UK, one in eight in Germany” – Teva CEO Erez Vigodman
Headquartered in Jerusalem, Teva is a leading global pharmaceutical company with a portfolio of more than 1,800 medicines and 16,000 products for nearly every therapeutic area.
Teva CEO Erez Vigodman told AFP that “one in six prescriptions in the US [will be] Teva, one in six in the UK, one in eight in Germany,” in the wake of these acquisitions.
The Anda acquisition, announced late Wednesday, is said to be the largest-ever purchase by an Israeli company.
“Congratulations to Teva for the largest-ever acquisition, largest-ever equity financing and largest-ever debt financing by an Israeli company,” writes Barclays, a long-time financial adviser to Teva.
According to a Reuters report, the global healthcare sector has seen an unprecedented wave of deals since early 2014 – including large drugmakers buying up smaller rivals.
“Joining Teva opens a new world of possibilities for Anda, especially as the appropriate utilization of generic medicines remains the most effective means by which to ensure broad patient access,” said Charles D. Phillips, President & CEO of Anda. “We look forward to the opportunity to utilize the Teva network to the advantage of our customers and patients across the country.”
“Anda is a natural fit into our business in general and our extensive supply chain network in particular,” said Olafsson. “We believe Anda is truly a unique company which further enhances the offerings that Teva can provide. This strategic move enables us and our customers to improve capabilities and flexibility given the changes the pharmaceutical industry is currently undergoing, in order to provide access to more patients throughout the country. Additionally, both Teva and Anda’s customers will benefit from our ability as the largest producer of medicines in the world to leverage our size and scale.”
Anda, which will continue to operate as a stand-alone business but report to Teva, 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.
For the full year 2016, Anda is expected to generate more than $1 billion in third-party net revenue, according to a press statement.
Meanwhile, Teva on Tuesday completed its acquisition of Allergan’s generic division – giving the Israeli company a commercial presence across 80 markets.
“The acquisition of Actavis Generics comes at a time when Teva is stronger than ever — in both our generics and specialty businesses,” said Teva’s Vigodman. “Through our acquisition of Actavis Generics, we are creating a new Teva with a strong foundation, significantly enhanced financial profile and more diversified revenue sources and profit streams backed by strong product development engines in both generics and specialty. This is a platform that is expected to generate multi-year top-line and bottom-line growth as well as significant cash flow.”
The Anda transaction is expected to close in the second half of 2016.
Teva said its net revenues in 2015 amounted to $19.7 billion.