Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has once again been linked with negotiations companies in the Japanese market. Reuters reported at the weekend that the latest company to be eyed by Teva is Sawai Pharmaceutical Co. Ltd (TSE: 4555).
Teva’s relations with Japan received a boost three years ago, with the signing in May 2003 of a strategic agreement with another Japanese company, Eisai Co. Ltd (TSE: 4523) for the joint development of Teva’s rasagiline for other purposes including the treatment of Alzheimer’s disease. Teva and Eisai are expected to jointly market the drug in the US.
Sawai surged to a all-time high on Friday amid speculation that it may become takeover target by Teva, which is looking for an entry route to the profitable market. Sawai jumped 7.5% to a record high of 5,910 yen in morning trading after a pharmaceutical trade magazine reported that Teva was apparently considering a takeover of the company.
"We have not received any takeover proposal from Teva and we are not in talks with any foreign companies on an alliance," said a spokesperson at Sawai.
In January, Teva completed the largest acquisition in its corporate history when it took over Ivax Corp. in a deal worth $8.8 billion, including Ivax’s debt. The move made Teva the world’s largest generic drug maker. It now employs nearly 26,000 people in 60 countries.
Published by Globes [online], Israel business news - www.globes.co.il - on July 2, 2006
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