JERUSALEM — Israel’s Teva Pharmaceutical Industries Ltd. said Monday it is purchasing Dublin-based Allergan PLC’s generic pharmaceuticals business for $40.5 billion, in what Israeli analysts called the largest-ever acquisition by an Israeli company.
Statements from both companies say the deal will see Allergan receive $33.75 billion in cash and shares of Teva valued Monday at $6.75 billion. In light of the acquisition, Teva said it was withdrawing its $40 billion-plus takeover offer for pharmaceuticals company Mylan N.V.
Word of the acquisition saw Teva shares shoot up 13 percent in pre-opening trading on the Nasdaq. Trading in Teva shares on the Tel Aviv Stock Exchange halted over the news of the sale.
The Israeli pharmaceutical giant is the world’s largest generic drugmaker. It said in a statement that the acquisition would provide patients with more access to affordable medicines.
“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,” Erez Vigodman, president and CEO of Teva, said in a statement.
