The Israeli pharmaceutical manufacturing giant Teva has agreed a takeover of its US competitor Barr in a deal worth $7.5 billion (£3.75 billion), it announced today.
Teva also assume the $1.5 billion (£750,000) debt held by Barr, in a deal which further strengthens its position as the world’s leading seller of off-patent drugs. The joint company will market over 500 products and would have had combined revenue in 2007 of $11.9 billion (£5.98 billion).
“The acquisition of Barr will elevate Teva’s market leadership to a new level,” said Teva president and CEO, Shlomo Yanai, “The combination of our two companies provides an outstanding opportunity strategically and economically: it will enhance our market share and leadership position in the US and in key global markets; further strengthen our portfolio and pipeline; and provide upside to our strategic plan, by allowing us to exceed our 20/20 goals by 2012.”
The 20/20 strategic target set last year includes doubling revenue to $20 billion (£10 million) in the five years to 2012. Between them the firms employ 37,000 people and operate in 60 countries worldwide. Teva said the takeover would benefit it most by the addition of Barr’s female health products and that it would further profit from economies of scale in complementary products across the two brands.
The companies are expected to fully integrate in late 2008.