Companies

Indian drug-makers to acquire Teva’s products

Our Bureau Hyderabad | Updated on January 18, 2018 Published on July 29, 2016

The acquisition of 79 existing and future products from Teva by 11 firms, including Dr Reddy’s Laboratories Ltd, Cipla and Aurobindo Pharma, will ‘eliminate anti-competitive effects of the proposed acquisition’

Major Indian drug-makers are likely to acquire a host of Israel-based Teva Pharmaceuticals’ products as a fall out of a proposed acquisition of Allergan’s generic pharmaceutical business by Teva.

According to a notification from the US Federal Trade Commission (USFTC), the acquisition of 79 existing and future products from Teva by 11 firms, including Dr Reddy’s Laboratories Ltd, Cipla and Aurobindo Pharma will ‘eliminate anti-competitive effects of the proposed acquisition’.

Thus, the acquisition of Teva’s products in select markets is a pre-condition for approving Teva-Allergan deal. In July 2015, Teva proposed to acquire Allergan’s generic pharma business for approximately $40.5 billion. It is then required to submit a consent agreement to the USFTC in order to preserve competition. It is in this consent agreement section that Teva had disclosed that it divest rights and assets to the acquirers, including Mayne Pharma Group, Impax Laboratories, Inc, Dr Reddy’s Labs, Cipla and Aurobindo. In June 2016, Hyderabad-based Dr Reddy’s had entered into a definitive agreement with Teva and an arm of Allergan plc to acquire a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the US for $350 million in cash.

Published on July 29, 2016
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