Teva, Allergan generics deal approved

Teva Pharmaceutical Industries won U.S. antitrust approval to purchase Allergan’s generics business after agreeing to divest 79 generic drugs to rival firms, according to the Federal Trade Commission (FTC).

The $40.5 billion deal, which was announced in July 2015, solidifies Teva's position as the world's leading maker of generics while freeing Allergan to focus on branded drugs. It also marks the largest drug divestiture order in an FTC pharmaceutical merger case.

When the transaction is closed next week, the combined company will have about 338 product registrations pending U.S. regulatory approval and will hold the leading position as the initial market entrant for around 115 pending U.S. generic drug applications.

Chief Executive Erez Vigodam said in a statement that the deal will generate $1.4 billion in operational and tax savings by the end of 2019 and raise adjusted earnings by 14% next year.

Teva and Allergan must divest the drug products no later than 10 days after the acquisition is complete. The acquirers of the divested products are Mayne Pharma Group Ltd., Impax Laboratories, Inc., Dr. Reddy’s Laboratories Ltd., Sagent Pharmaceuticals, Inc., Cipla Limited, Zydus Worldwide DMCC, Mikah Pharma LLC, Perrigo Pharma International D.A.C., Aurobindo Pharma USA, Inc., Prasco LLC and 3M Company.