Teva, Looking to Close Actavis Deal, Sells $40 Million Portfolio to Sagent
June 16 2016 - 11:07AM
Dow Jones News
By Brittney Laryea
Hospital pharmaceutical provider Sagent Pharmaceuticals Inc.
said Thursday it will buy a portfolio of five abbreviated new drug
applications from Teva Pharmaceutical Industries Ltd. and Actavis
LLC, Allergan PLC's generics unit, for $40 million.
Teva and Allergan are in the process of divesting the drug
applications as part of Teva's $40.5 billion cash-and-stock
acquisition of Allergan's generic medicine business, Actavis
Generics.
Teva's purchase of Allergan's generics unit was initially set to
be completed by May 2, but was delayed in March because of
difficulty getting approval from U.S. federal regulators. Analysts
said the delay may have indicated a need for the companies to
divest more products to convince regulators to approve the
deal.
Sagent's all-credit purchase includes the drug Propofol, which
Sagent had been distributing in conjunction with Teva. Sagent Chief
Executive Allan Oberman said Propofol was the company's
second-largest selling product by revenue in 2015. Sagent said it
expects the additions to its portfolio to contribute $40 million to
$50 million of revenue per year.
Mr. Oberman said the buy is part of the drug company's growth
strategy. The acquisition is contingent on the closing of the
Teva-Allergan transaction.
Sagent's stock has risen 24% over the past month and edged up
0.4% Thursday. Shares of Teva fell 1.3% Thursday to $51.70.
Write to Brittney Laryea at Brittney.Laryea@wsj.com
(END) Dow Jones Newswires
June 16, 2016 10:52 ET (14:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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