Bayer has bought the US animal health business of Teva Pharmaceutical Industries in a deal that could be worth up to $145 million.
The German group is paying an upfront fee of $60 million, while the other $85 million is linked to manufacturing and sales targets. Bayer says the acquisition "will reinforce the food animal franchise" of the firm, "by providing a range of anti-infective solutions for livestock and introducing reproductive hormones to [its] product offerings".
The Leverkusen-headquartered group added that the transaction will strengthen its companion animal franchise "with dermatological, pet wellness and nutraceutical products". The deal gives Bayer a manufacturing site in St Joseph, Missouri and around 300 employees; it is expected to close in 2013, subject to antitrust clearance.
Itzhak Krinsky, head of business development at Teva, said "we are committed to making disciplined decisions that focus on our core businesses and strategically position the company as setting a new standard in both generic and branded medicines". The firm will continue to sell or out-licensing assets "that no longer fit within the scope of our business", he added.
The Bayer/Teva deal came a day after US over-the-counter and generic drugmaker Perrigo announced that it was buying Sergeant's Pet Care Products, for $285 million.