In other words, the nominal deal value of $40.5B (less than the $45B reported over the weekend) is 83% in cash and 17% in TEVA stock. TEVA is paying a steep price of 17x EBITDA for AGN’s generic-drug business.
After this transaction closes, AGN will have net debt close to zero, and it can thereby resume its aggressive acquisition of other brand-drug companies.
AGN's sale does not include the FoB program partnered with AMGN (#msg-70097496).
As a consequence of the TEVA-AGN deal, TEVA has dropped its hostile pursuit of MYL (who remains committed to its own hostile takeover of PRGO).
TEVA held a CC at 8am ET today.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”