>>Q: Was Teva blindsided by the Albuferon problem… or did Teva know about it and use it to negotiate a lower acquisition price?<<
My guess is that they were blindsided - and if the breakup fee isn't too large, it wouldn't surprise me greatly if they paid it.
On the other hand, the pulmonary side effects may well be specific to albumin fused with IF-alpha. Apparently there are low levels of that AE with IF-alpha alone.