Official: Israel's Teva Pharmaceutical to buy Allergan's generic pharmaceuticals business
Israel's Teva Pharmaceutical on Monday said it is purchasing Dublin-based Allergan's generic pharmaceuticals business for $40.5 billion.
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.
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.
Teva said Monday it had withdrawn its proposal to purchase rival generic-maker Mylan after reaching the agreement with Allergan.
Separately, Teva reported second-quarter profit that beat estimates and raised its full year 2015 outlook.
In preliminary results, Israel-based Teva said it earned $1.43 per diluted share excluding one-time items in the April-June quarter, 15 percent higher than a year earlier.
Revenue slipped 2 percent to $4.97 billion but rose 6 percent excluding the impact of foreign exchange fluctuations and the sale of U.S. over-the-counter plants.
Teva was forecast to have earned $1.31 per share in the second quarter on revenue of $4.91 billion, according to Thomson Reuters I/B/E/S.
Teva will publish full results on Thursday.
It raised its 2015 EPS estimate to $5.15 to $5.40 from $5.05 to $5.35.
The results "further demonstrate Teva's continuous momentum and significantly strengthened fundamentals, improved generics and specialty businesses and ability to drive organic growth," said Teva Chief Executive Erez Vigodman.
Teva is Israel's largest drug company and has long been a source of pride for Israelis. The company dates back to 1901, when its founders launched a small importer of medications. According to the company's website, it began producing drugs in the 1930s.
—CNBC and Reuters contributed to this report.
