A Penny Saved is a Shekel Earned
Jerusalem-based Teva Pharmaceutical Industries signed a definitive agreement on July 25 to acquire Miami, Florida-based IVAX for about $7.4 billion, creating the world’s largest generic-drug company.
Assuming that the transaction is completed, Teva will have annual sales of branded and generic drugs of $7 billion. It will operate directly in more than 50 countries and will employ about 25,000 people.
Close to 90% of Teva’s sales are in North America and Europe. IVAX, with its operations in Latin America and Eastern Europe, will expand Teva’s geographic reach.
Israel Makov, president and CEO of Teva, says the acquisition will provide his company with additional products, a deeper pipeline and a wider presence in new therapeutic areas and growth markets. Generic drugs account for nearly half of the prescription-drug market in the US and analysts say this share is expected to increase as a result of efforts to control rising healthcare costs.
Meanwhile, Teva’s new drug for Parkinson’s disease, Agilect, has been approved for marketing in the EU and Israel, and is under evaluation in the US and other markets. Agilect was launched in the UK in June and will be gradually introduced in other EU countries.