Teva, Allergan to divest generics to Impax Labs for about $586 mn
24 June 2016
US-based technology-based specialty pharmaceutical company Impax Laboratories Inc yesterday struck a deal to buy a portfolio of generic drugs from Teva Pharmaceutical Industries Ltd and Allergan for about $586 million.
The deal is part of Teva's divestiture of assets as required by the US Federal Trade Commission in order to obtain regulatory approval for its $40.5 billion acquisition of Ireland-based Allergan's generics business. (See: Teva in $40.5-bn pact to buy Allergan's generics, ends Mylan bid) The deal comes a few days after Teva and Allergan sold eight generic drugs to Dr Reddy's Laboratories for $350 million in cash.
Impax is funding the purchase with existing cash and $400 million in new fully committed term loans.
Under the deal, Impax will acquire a broad portfolio of generic products across solid oral, inhalable, injectable and topical dosage forms and the return of its rights to pending abbreviated new drug application for the generic equivalent of Concerta.
The transaction is expected to add to the Impax portfolio of 15 currently marketed generic products, one approved generic product and two approved strengths of a currently marketed product, which have not yet been launched, one pipeline generic product and one pipeline strength of a currently marketed product, which are pending US Food and Drug Administration approval.
It will also get the full commercial rights to Impax's pending ANDA for the generic equivalent to Concerta (methylphenidate hydrochloride), a product previously partnered with Teva; and one generic product under development.
The acquired products generated approximately $150 million in net sales and around $100 million in gross profit in 2015.
According to IMS Health (NSP), the pending and development pipeline programs are estimated to have US brand and generic sales of approximately $3.1 billion for the 12 months ending in March 2016.
Impax president and CEO Fred Wilkinson said, ''Through this transaction, we will be expanding our portfolio of difficult-to-manufacture or limited competition products and maximising utilisation of our existing manufacturing facilities in Hayward, California, and Taiwan.''
''The anticipated acquisition of these currently marketed and pipeline products fits with our strategic priorities of maximizing our generic platform, optimizing R&D, and accelerating business development to create long-term growth,'' he added.