German drugs and chemicals company Merck KgaA may sell its generics division to Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) for $5.3 billion, according to a report in German newspaper Handelsblatt.
”Handelsblatt” says that among the candidates for acquiring the division are Teva and Novartis AG (NYSE: NVS) through its Sandoz division, despite the fact that the two companies may encounter regulatory difficulties. The report also said that private equity groups were also likely to express interest in the division.
The sale of its generics division would enable Merck KGaA to focus on drug development and reduce the debt it incurred after it acquired Swiss biotechnology company Serono SA (NYSE: SRA; SWX: SEO) last year. "Handelsblatt" says Merck declined to comment on the report.
Last year, Teva completed the integration of Ivax, which it acquired during 2005 for a record $8.8 billion, including Ivax’s debt. The acquisition made Teva the world’s largest generic drugs manufacturer.
During 2006, rumors circulated to the effect that Teva could make another acquisition. Among the possible targets mentioned were companies in India and Japan.
Merck KGaA is not connected to US pharmaceuticals giant Merck & Co. Inc. (NYSE: MRK).
Published by Globes [online], Israel business news - www.globes.co.il - on January 4, 2007
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