Teva Pharmaceutical Industries has unveiled plans to buy Allergan-owned US generics giant Anda for $500 million.
Anda distributes generic, brand, specialty and over-the-counter pharmaceutical products from more than 300 manufacturers to various healthcare and pharmacy outlets across the US, and is expected to pull in revenues of more than $1 billion in third-party revenues this year.
The transaction, which is subject to antitrust clearance and other conditions, is expected to close in the second half of the year, after which Anda will continue to operate as a stand-alone business.
"Anda is a natural fit into our business in general and our extensive supply chain network in particular," stated Siggi Olafsson, president and chief executive of Global Generic Medicines. "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."
News of the deal comes as the Israeli drugmamker completes its acquisition of Allergan's generics business Actavis Generics for $33.43 billion in cash plus 100 million Teva shares, in a move designed to boost competitiveness and diversify the firm's revenue stream.
According to Teva, it expects to achieve cost synergies and tax savings of around $1.4 billion annually by the end of 2019, by eliminating duplication and inefficiencies on a global scale and capturing economies of scale.