Teva sells US animal health business to Bayer

The price is up to $145 million, depending on milestone payments.

Bayer HealthCare LLC and Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) announced today that they have signed an agreement in which Bayer will acquire the US-based animal health business of Teva for up to $145 million.

The purchase price includes an upfront payment of $60 million plus a total of $85 million in milestone payments, which are linked to the successful and timely achievement of manufacturing and sales targets. Bayer said that the acquisition allows it to expand its companion and food animal product lines in the US by integrating the acquired assets into its animal health business.

Teva said that the transaction reflected its commitment to focus its efforts on human health and its core expertise of providing generic and branded medicines to patients around the world.

The transaction, encompassing a manufacturing site in St. Joseph, Missouri and around 300 employees, is expected to close in 2013, subject to antitrust clearance and satisfaction of other conditions.

"We are pleased with the sale of our animal healthcare business to Bayer HealthCare, a leader in animal healthcare,” said Itzhak Krinsky, Group Executive Vice President and Head of Business Development at Teva. “Today’s transaction represents a successful outcome for both parties and is a part of our global strategic planning. We are committed to making disciplined decisions that focus on our - 2/3 - core businesses and strategically position the company as setting a new standard in both generic and branded medicines. As part of our overall strategy to refine our global footprint, we will continue to leverage our product portfolio and R&D efforts while selling or out-licensing assets that no longer fit within the scope of our business."

Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
Yaron Daniely Replacing Ritalin

Alcobra has had two successful Nasdaq offerings this year as it develops an ADHD treatment with fewer side effects.

Twitter Facebook Linkedin RSS Newsletters