Sources inform ''Globes'' that Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is in talks to make another acquisition even before closing its takeover of Barr Pharmaceuticals Inc. (NYSE: BRL). The company in question is German generics drug firm Stada Arzneimittel AG (XETRA: SAZ), which has a market cap of €1.8 billion.
Teva said in response that it does not comment on rumors. Stada's response was similar.
Stada is Germany's third largest generics drug maker, and one of the top twenty worldwide. Teva, the world's largest generics company, has long sought to gain a foothold in Germany, one of the largest generic drug markets in the world, and growing.
In an interview with "Globes" few months ago, Teva president and CEO Shlomo Yanay said, "Germany is the largest generics market in Europe. We've marked it, and we're constantly examining possibilities there, including acquisitions."
With the acquisition of Barr, Teva is also expanding its European business. Following the acquisition, Teva Europe VP Gerard van Odijk promised, "Teva's products will be on the shelves of every pharmacy in Germany."
The acquisition of a German company, if carried out, should not come as a surprise. More surprising is the proximity to the acquisition of Barr, which will cost Teva $9 billion, including Barr's debt. Before Barr, Teva had already acquired two companies this year: CoGenesys Inc. for $400 million and Bentley Pharmaceuticals Inc. (NYSE: BNT) for $360 million. Both acquisitions have already been completed. Teva usually buys one company a year, and 2008 is well above the statistical average.
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2008
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