Teva and an Allergan subsidiary have reached an agreement to sell the US rights to eight therapies to Dr. Reddy's Laboratories for a combined consideration of $350 million in cash. The portfolio consists of products that are being divested by Teva as a precondition of the completion of its $40.5-billion deal to acquire Allergan's global generic business. Completion of the divestiture is contingent upon the closure of the Teva/Allergan agreement and approval by the US Federal Trade Commission.
Dr. Reddy's noted that the acquired portfolio consists of "complex generic products across diverse dosage forms." According to IMS Health data, the branded versions of the eight products generated about $3.5 billion in combined revenue for the 12 months ended in April.
Dr. Reddy's CEO G V Prasad remarked "this transaction will add strength to our product portfolio, help us be more relevant in our US market and also create new opportunities for growth." Company spokesman Calving Printer, who declined to list the products by name, citing "mutual privileges and confidentialities" between the buyer and seller, explained that one of the therapies has been awarded FDA approval, while the others have been submitted for marketing authorisation.
Meanwhile, Teva previously agreed to divest certain assets in 24 European countries in conjunction with European Commission approval of its takeover of Allergan's business. The Israeli drugmaker later revealed that US approval of the deal had been delayed, while Allergan chief executive Brent Saunders indicated that the transaction was likely to close this month.
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