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Teva completes acquisition of Actavis generics

Teva completes acquisition of Actavis generics

Acquisition Reinforces Teva's Strategy and Opens New Possibilities for the Company in Generics and Specialty; Serving 250 Million People, Every Day Jerusalem, 2 August 2016 – Teva Pharmaceutical Industries Ltd. (NYSE i TASE: TEVA) and Allergan plc (NYSE: AGN) today announced that Teva has completed its acquisition of Allergan’s generics business (Actavis Generics).

This strategic acquisition brings together two leading generics businesses with complementary strengths, R&D capacities, pipelines, product portfolios, global presence, operative networks and cultures. The result is a stronger, more competitive Teva, well positioned to thrive in an evolving global marketplace, to seize opportunities on the global and US generics market, to enable access to highest-quality generic drugs at the most competitive  prices, thus creating value  for patients, health systems and investors worldwide.

„The acquisition of Actavis Generics comes at a time when Teva is stronger than ever—in both our generics and specialty businesses “, said Erez Vigodman, President and CEO, Teva.  „Through our acquisition of Actavis Generics, we’re establishing a solid foundation for Teva.”

Mr. Vigodman continued, “We are confident that we can realize the projected synergies and accretion inherent in this acquisition for our stockholders and quickly integrate Actavis Generics into Teva. I am confident that as a result of our strengthened financial profile following this transaction, we will be even better positioned to obtain the benefits of Teva’s innovative specialty and generic research to support top-line growth and expand our portfolio across the business.”

With the acquisition, Teva now has around 338 product registrations pending FDA approval and holds the leading position in first-to-file opportunities with around 115 pending ANDAs in the US. After divestment, Teva's pipeline in Europe will result in marketing more than 5000 products. In the growth markets, including Asia, Africa, South America, the Middle East and Russia, around 600 products are waiting for approval. In 2017 Teva plans to market the total of 1500 generic products.

In the last decade Teva's products has resulted in around USD 215 billion to the US health system.

Increased Global Commercial Reach

Teva’s acquisition of Actavis Generics improves international commercial opportunities and significantly enhances the global scale of its sales and R&D platforms. Teva has the largest medical cabinet with more than 1.800 medicines and 16.000 products and is commercially present in 80 markets, including a top three position in more than 40 countries.

Financial Highlights

By the end of 2019 savings in Teva are expected as a result of the synergy of costs and tax expenditures in the amount of around USD 1.4 billion.

Allergan plc received $33.43 billion in cash and approximately 100 million Teva shares.

Strong Combined Global Leadership Team and Employees with Deep Experience across the Business

The two companies share a close cultural and strategic fit, and Teva is focused on leveraging both organizations’ competencies and talent. The combined company's expanded senior management team is comprised of leaders from both Teva and Actavis.  It is structured to leverage the strong talent from both organizations to ensure that the new company capitalizes on its expanded global commercial footprint and Teva's continued strength as a world leader in generics. With this structure in place beginning on Day 1, the company is immediately positioned to maximize growth across all of its global businesses. 

Operational Integration and Readiness

Since the acquisition agreement was announced in July 2015, integration teams at Teva and Actavis Generics have worked diligently to plan for integration of the two companies in order to ensure that the combined company is fully operational immediately upon the closing of the transaction. As a result of these actions, Teva will begin to capitalize on the benefits offered by the acquisition of Actavis Generics starting immediately.

„With this acquisition we will additionally expand product portfolio in Croatia and in SEE Europe where we are taking over the leading position among pharmaceutical companies”, said Mihael Furjan, President of the Board of PLIVA and SEE CEO. “I believe we will continue creating new values in the region where we operate, additionally contribute to health system savings and offer the largest product portfolio of the highest quality to your patients.”

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading global pharmaceutical company that delivers high-quality, patient-centric healthcare solutions to millions of patients every day. Headquartered in Israel, Teva is the world’s largest generic medicines producer, leveraging its portfolio of more than 1,800 molecules to produce a wide range of generic products in nearly every therapeutic area. In specialty medicines, Teva has a world-leading position in innovative treatments for disorders of the central nervous system, including pain, as well as a strong portfolio of respiratory products. Teva integrates its generics and specialty capabilities in its global research and development division to create new ways of addressing unmet patient needs by combining drug development capabilities with devices, services and technologies. Teva's net revenues in 2015 amounted to $19.7 billion. For more information, visit www.tevapharm.com. .

Teva's Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995:

This release contains forward-looking statements, which are based on management’s current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to develop and commercialize additional pharmaceutical products; competition for our specialty products, especially Copaxone® (which faces competition from orally-administered alternatives and a generic version); our ability to consummate the acquisition of Allergan plc’s worldwide generic pharmaceuticals business (“Actavis Generics”) and to realize the anticipated benefits of such acquisition (and the timing of realizing such benefits); the fact that following the consummation of the Actavis Generics acquisition, we will be dependent to a much larger extent than previously on our generic pharmaceutical business; potential restrictions on our ability to engage in additional transactions or incur additional indebtedness as a result of the substantial amount of debt we will incur to finance the Actavis Generics acquisition; the fact that for a period of time following the consummation of the Actavis Generics acquisition, we will have significantly less cash on hand than previously, which could adversely affect our ability to grow; the possibility of material fines, penalties and other sanctions and other adverse consequences arising out of our ongoing FCPA investigations and related matters; our ability to achieve expected results from investments in our pipeline of specialty and other products; our ability to identify and successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; the extent to which any manufacturing or quality control problems damage our reputation for quality production and require costly remediation; increased government scrutiny in both the U.S. and Europe of our patent settlement agreements; our exposure to currency fluctuations and restrictions as well as credit risks; the effectiveness of our patents, confidentiality agreements and other measures to protect the intellectual property rights of our specialty medicines; the effects of reforms in healthcare regulation and pharmaceutical pricing, reimbursement and coverage; competition for our generic products, both from other pharmaceutical companies and as a result of increased governmental pricing pressures; governmental investigations into sales and marketing practices, particularly for our specialty pharmaceutical products; adverse effects of political or economic instability, major hostilities or acts of terrorism on our significant worldwide operations; interruptions in our supply chain or problems with internal or third-party information technology systems that adversely affect our complex manufacturing processes; significant disruptions of our information technology systems or breaches of our data security; competition for our specialty pharmaceutical businesses from companies with greater resources and capabilities; the impact of continuing consolidation of our distributors and customers; decreased opportunities to obtain U.S. market exclusivity for significant new generic products; potential liability in the U.S., Europe and other markets for sales of generic products prior to a final resolution of outstanding patent litigation; our potential exposure to product liability claims that are not covered by insurance; any failure to recruit or retain key personnel, or to attract additional executive and managerial talent; any failures to comply with complex Medicare and Medicaid reporting and payment obligations; significant impairment charges relating to intangible assets, goodwill and property, plant and equipment; the effects of increased leverage and our resulting reliance on access to the capital markets; potentially significant increases in tax liabilities; the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business; variations in patent laws that may adversely affect our ability to manufacture our products in the most efficient manner; environmental risks; and other factors that are discussed in our Annual Report on Form 20-F for the year ended December 31, 2015 and in our other filings with the U.S. Securities and Exchange Commission (the "SEC"). Forward-looking statements speak only as of the date on which they are made and we assume no obligation to update or revise any forward-looking statements or other information, whether as a result of new information, future events or otherwise.

Source: Teva Pharmaceutical Industries Ltd.

Teva Pharmaceutical Industries Ltd.

IR Contacts:

Kevin C. Mannix, United States, 215-591-8912

Ran Meir, United States, 215-591-3033

Tomer Amitai, Israel, 972 (3) 926-7656

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PR Contacts:

Iris Beck Codner, Israel, 972 (3) 926-7687

Denise Bradley, United States, 215-591-8974

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