Teva to acquire Japanese drug manufacturer
Jerusalem, Israel (AHN) – Israeli drug maker Teva said on Monday it had purchased a majority stake in one of Japan’s largest generics manufacturer for $460 million.
The Jerusalem-based company said it had agreed to acquire 57 percent of Taiyo Pharmaceutical. The cash offer values Taiyo at $1.3 billion.
Teva plans to purchase all remaining shares of Taiyo in a second transaction that will be paid for through cash and bank debt. The full acquisition is expected to be completed by the end of the third quarter.
The purchase boosts Teva’s presence in Japan, which is the world’s second-largest pharmaceutical market. The company is the world’s largest generics maker but also produces a number of branded drugs for neurological and respiratory ailments.
Teva makes Copaxone, which is used to treat multiple sclerosis. It strengthened its branded business last month with the acquisition of U.S.-based Cephalon.
With the merger with Taiyo, Teva expects to reach its 2015 target of $1 billion in sales in Japan earlier than scheduled.
Taiyo reported revenue of $530 million last year. It makes more than 550 generic drugs in a variety of therapeutic areas.
Shlomo Yanai, Teva’s president and chief executive, said in a statement, “Taiyo’s strong market reach, cutting-edge production facilities, and impressively large product portfolio, combined with Teva’s scale and capabilities as the world’s largest generics company, will enable us to offer a much wider range of high quality, affordable generics to a much larger segment of the Japanese market.”
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