Allergan to sell distribution business to Teva
Allergan has agreed to sell another slice of its business to Teva, agreeing to divest its distribution business for $500 million.
The deal to sell the unit known as Anda makes sense for Allergan, which wants to focus its attention on branded drugs.
The latest move follows hot on the heels of Allergan’s $40.5 billion sale of its generics business, formerly known as Actavis, to Teva, which finally went ahead earlier this week.
Anda distributes, generic, brand and specialty over-the-counter drugs from more than 300 manufacturers to independent and chain pharmacies, nursing homes, mail order pharmacies, hospitals, clinics, and physician offices across the US.
Teva is one of Anda’s most important suppliers, so the acquisition is a good strategic fit for the Israel-based business too.
Anda has also helped launch several Allergan products, such as mental health medicines Vraylar (carizapine), its Liletta intrauterine device, and Actavis’ generic of AstraZeneca’s Crestor (rosuvastatin) cholesterol drug.
Allergan will continue to support the business until closure of the transaction, expected in the second quarter.
As part of the deal, Teva will acquire three US distribution centres, employing more than 650 people.
Siggi Olafsson, president and CEO of Teva’s Global Generic Medicines unit, said: “Anda is a natural fit into our business in general and our extensive supply chain network in particular.”
Allergan will report Anda as discontinued operations from its second quarter earnings report onwards.
Anda is expected to generate net revenues of around $1.5 billion in the full year 2016. The deal is subject to approval by US antitrust regulators.
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