EU & Competition news

Teva Pharmaceutical Industries Ltd has announced a definitive agreement to acquire Barr.

Under the terms of the agreement, each share of Barr common stock will be converted into $39.90 in cash and 0.6272 Teva ADRs. Based upon the unaffected NASDAQ closing price of Teva's ADRs on July 16, 2008, the indicated combined per share consideration for each outstanding share of Barr common stock amounts to $66.50, or a total consideration of $7.46bn plus the assumption of net debt of approximately $1.5bn.

The purchase price represents a premium of 32% to Barr's average daily closing price on the New York Stock Exchange for the 52-week period ending on 16 July 2008, and 42% to the closing price on 16 July 2008.

On a pro forma basis, 2007 revenues of the combined company would have been approximately $11.9bn. The combined company will operate directly in more than 60 countries and employ approximately 37,000 people worldwide.

Shlomo Yanai, President and Chief Executive Officer of Teva, said, “The combination of our two companies provides an outstanding opportunity strategically and economically: It will enhance our market share and leadership position in the US and key global markets, further strengthen our portfolio and pipeline, and provide upside to our strategic plan, by allowing us to exceed our 20/20 goals for 2012."

It has also been announced that Teva has completed its acquisition of Bentley Pharmaceuticals, Inc which is to operate in Spain under the Teva name. At closing, Bentley consisted solely of its generic pharmaceutical operations, following the spin-off of its drug delivery business to its stockholders on 30 June 2008. The aggregate purchase price paid by Teva was approximately $360 million in cash, or approximately $14.82 per Bentley share.

Bentley currently manufactures and markets a portfolio of approximately 130 pharmaceutical products as both branded generic and generic products, to physicians, pharmacists and hospitals. Bentley markets its products primarily in Spain, but also sells generic pharmaceuticals in other parts of the European Union.

Teva expects that the acquisition will become accretive within 12 months of closing.

This material first published by the LexisNexis Butterworths. All rights reserved.