Teva to buy Allergan's drug-distribution business for $500 million

Teva said Wednesday that it agreed to acquire Allergan's Anda distribution business for $500 million. Teva noted that for 2016, Anda, which distributes generic, brand, specialty and over-the-counter pharmaceutical products from more than 300 manufacturers in the US, is expected to generate more than $1 billion in third-party net revenue. The transaction is expected to close in the second half of 2016.

"Anda is a natural fit into our business in general and our extensive supply chain network in particular," remarked Teva global generic medicines CEO Siggi Olafsson, adding "we believe Anda is truly a unique company which further enhances the offerings that Teva can provide."

Teva noted that as part of the deal, it will gain three distribution centres with a total of over 650 staff. Olafsson indicated that following completion of the purchase, "Anda will continue to operate as a stand-alone business."

Meanwhile, Allergan CEO Brent Saunders stated "the sale of Anda to Teva...is a strategic transaction that benefits Allergan and the employees and customers of the Anda business." The executive continued "for Allergan, this divestiture continues our evolution as a focused branded growth pharma leader."

The news comes after Teva recently completed its $40.5-billion purchase of Allergan's global generic business.

To read more Top Story articles, click here.