Teva to acquire CoGenesys

Israel's Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) plans to acquire Rockville-based privately-held biopharmaceutical company, CoGenesys, Inc, which has a broad-based biotechnology platform and focused on the development of peptide- and protein-based medicines across broad therapeutic categories.

Teva will pay a purchase price of $400 million cash, funded from its internal resources. The deal has been approved by the boards of directors of each company and by the shareholders of CoGenesys and is subject to customary closing conditions (including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976), and is expected to close during the first half of 2008.

CoGenesys was established in 2005 as a division within Human Genome Sciences Inc. (HGSI) to focus on early drug development and was spun off as an independent company in June 2006. The company's strategy is to demonstrate safety and proof of concept in clinical trials followed by selectively licensing or partnering of compounds to fund further development.

Teva Pharmaceutical Industries Ltdis among the top 20 pharmaceutical companies in the world and is the leading generic pharmaceutical company. It develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients. Over 80 per cent of Teva's sales are in North America and Europe.

In its recently completed strategic review, Teva identified biopharmaceuticals,  and primarily biogenerics, as a key, long-term growth opportunity for itself. With this acquisition, Teva says it is taking a significant step towards advancing its strategic goals, demonstrating its commitment to becoming a leading player in the biogenerics market, as that market evolves.

Teva will simultaneously gain access to a world-class biotechnology research team led by Dr. Craig Rosen and Steve Mayer, to cutting edge technologies, as well as to an attractive innovative pipeline.