Impax Buys Generic Drugs from Teva and Allergan for $586 Million
Impax Laboratories (IPXL) said it would buy a portfolio of generic drugs from Teva Pharmaceutical Industries (TEVJF) and Allergan (AGN) for about $586 million.
The deal is part of the divestiture process mandated by the U.S. Federal Trade Commission in relation to Teva’s acquisition of Allergan’s generics business for $40.5 billion.
Impax, which raised its full-year adjusted earnings per share forecast, said on Tuesday the deal will add 15 marketed generics, one approved generic drug as well as a pipeline generic drug.
The company said it will also take back rights from Teva to a generic version of Concerta, an ADHD drug made by Johnson & Johnson (JNJ), adding a near-term launch product to its pipeline.
The acquired marketed generic products generated about $150 million in net sales and about $100 million in gross profit in 2015, Impax said.
Impax Chief Executive Fred Wilkinson said the addition of 15 marketed products is currently expected to add about $80 million of revenue in the second half of 2016.
The company said it expected its adjusted earnings per share to increase by 20% over 2015, up from 10% it forecast previously. Impax reported adjusted earnings of $1.45 per share in 2015.
Reuters reported last month that Teva was finalizing up to $2 billion in asset sale agreements to win antitrust clearance for its purchase of the Allergan products.
Teva and Allergan earlier this month sold eight generic drugs to India’s Dr Reddy’s Laboratories for $350 million in cash.
Sullivan & Cromwell LLP and McDermott Will & Emery LLP served as legal advisers to Impax while RBC Capital Markets is providing fully committed financing.