According to a Reuters report that references ‘sources familiar with the matter’, Teva Pharmaceuticals (TEVA) is in advanced talks to buy the generic drug unit of Allergan (AGN) for between $40 billion and $45 billion.
A deal could be announced as early as next week, the report said, cautioning that negotiations had not yet been completed.
Jerusalem-based Teva, has been seeking to buy rival Mylan N.V. (MYL) for $40 billion, a deal Mylan has been resisting. Should Teva reach an agreement with Allergan, it would largely get what it has been seeking from a Mylan acquisition, which is a restock of its product pipeline, and an increased scale in the competitive generic-drug market. Allergan’s generics portfolio consists of established brands, over-the-counter products, and more than 1,000 drugs, including branded generics with key products such as generic versions of OxyContin and the Concerta attention-deficit-hyperactivity-disorder drug, according to the company’s website. The Dublin, Ireland-based company is the third largest generic manufacturer in the U.S. and holds a top 5 leadership position in nearly 20 International markets.
Should the deal materialize, it would further consolidate the health-care industry and become the latest mega transaction in a wave of mergers within the health care space.
Allergan’s market cap Friday stood at $121 billion, Teva’s stood at $54 billion.