Teva wins FTC approval for Allergan generics purchase, will divest of 79 drugs

Teva, the world’s largest generic drug maker, will be allowed to acquire Allergan’s generic drug business, with the condition it sell the rights and assets to 79 other products.

The Federal Trade Commission (FTC) said that divestiture will “preserve competition,” and include anesthetics and antibiotics, along with treatments for conditions including cancers, diabetes, high blood pressure and Parkinson’s disease.

“Millions of Americans rely daily on generic drugs to treat a wide range of illnesses,” said Debbie Feinstein, director of the FTC’s Bureau of Competition. “The FTC’s settlement safeguards the competitive availability of these medications for patients across the country who depend on them.”

The FTC said the acquirers of the divested products are The acquirers of the divested drugs are Mayne Pharma Group, Impax Laboratories, Dr. Reddy’s Laboratories, Sagent Pharmaceuticals, Cipla, Zydus Worldwide, Mikah Pharma, Perrigo Pharma International, Aurobindo Pharma, Prasco and 3M.

Teva will also have to offer existing active pharmaceutical ingredient (API) customers in 15 markets the option of entering into long-term API supply contracts.

In the company’s response to the FTC approval, Teva President and CEO Erez Vigodman said the combined company would have approximately 338 product registrations, He added the deal would result in $1.4 billion in savings by the end of 2019, partially due to lower taxes, and increase the company’s adjusted earnings by 14 percent.

“Through our acquisition of Allergan Generics, we will establish a strong foundation for long-term, sustainable growth, anchored by leading generics capabilities and a world-class late-stage pipeline that will accelerate our ability to build an exceptional portfolio of products—both in generics and specialty as well as the intersection of the two,” Vigodman said.