Teva Says Its Deal to Buy Allergan’s Generics Business Will Close ‘Any Time’
Teva Pharmaceuticals (TEVA) said on Wednesday it expected its $40 billion deal to buy Allergan’s (AGN) generics business to close “any time,” even as the companies extended the deadline for completing the transaction to October to allow more time for U.S. antitrust approval.
“We expect the closing of the … generics deal at any time now,” Teva Chief Executive Officer Erez Vigodman said during a conference call with analysts to discuss the Israeli drugmaker’s financial outlook.
Teva shares rose 2.7 percent to $53.86 in New York trading, and Allergan gained 1.6 percent to $243.44.
Vigodman’s comments came after Allergan said in a regulatory filing on Wednesday morning that the companies had amended their sale agreement to extend the deadline by three months into late October.
As recently as May, Allergan CEO Brent Saunders had said he expected the deal to close within weeks. The companies adjusted the agreement in June, according to the filing.
Allergan is now planning to exclude two products, Actonel and Carafate, from the sale and will reduce the cash it will pay by $221 million, the filing said.
Teva has also agreed to sell some groups of drugs to third parties as it tries to get clearance from the U.S. Federal Trade Commission, which is reviewing the deal.