Replies to post #193757 on Biotech Values

[DewDiligence]

TEVA CC today on AGN deal: Mgmt acknowledges weakness in FoBs, says seeking FoB partner.

[RockRat]

Re: Teva/AGN generic deal

Would there be any anti-trust issues here?

Regards, RockRat

[DewDiligence]

AGN CC slides re TEVA deal:

http://phx.corporate-ir.net/External.File?t=1&item=VHlwZT0yfFBhcmVudElEPTUxOTk4NDZ8Q2hpbGRJRD01ODgxODc=

[DewDiligence]

AGN adjusts 2H15 and long-term guidance for TEVA divestiture:

http://finance.yahoo.com/news/allergan-announces-updated-second-half-201500644.html

Continuing operations includes the U.S. Brands, U.S. Medical, International Brands and Anda distribution segments. For the second-half of 2015, Allergan expects to report non-GAAP continuing operations as follows:

• Revenue is expected to be greater than $8 billion
• Adjusted earnings before interest and taxes (EBIT) are expected to be between $3.8 billion and $4.0 billion
• Non-GAAP earnings per share (EPS) are expected to be between $6.25 and $6.65

(Allergan's continuing operations forecast for the second half of 2015 includes all of the company's non-GAAP interest expense of approximately ~$750 million.)

--
Following the close of the divestiture of the Generics business to Teva, New Allergan expects to have a powerful financial profile to drive continued long-term growth:

• 10% branded revenue growth
• Non-GAAP gross margins of 77% to 79% with additional long-term expansion anticipated
• Non-GAAP SG&A as a percentage of revenue between 21-24%, declining within that range over time
• Non-GAAP tax rate of ~15%
• Interest expense for New Allergan will be largely dependent on capital deployment decisions following the close of the transaction
• Commitment to investment grade ratings

[DewDiligence]

TEVA's purchase of AGN's generic-drug business (#msg-115711156) is not affected by the merger talks between AGN and PFE, according to all parties.

[DewDiligence]

TEVA raising $6.75B—half in common stock ADRs and half in convertible preferred stock—to pay for acquisition of AGN’s generic-drug business:

http://finance.yahoo.com/news/teva-announces-proposed-public-offerings-115400733.html

[DewDiligence]

TEVA-AGN deal finally closes—more than one year from the announcement date:

http://finance.yahoo.com/news/allergan-plc-completes-divestiture-global-164100384.html

Allergan plc today announced that it has completed the divestiture of its global generic pharmaceuticals business to Teva Pharmaceutical Industries Ltd. Allergan has received $33.4 billion in cash and 100.3 million shares of Teva stock valued at $5.4 billion based on the opening price of $53.39 for Teva Pharmaceutical Industries Ltd. shares on August 2, 2016. These shares are subject to a twelve month holding period post-close of the transaction.

…Teva has acquired Allergan's legacy Actavis Global Generics business, including the U.S. and international generic commercial units, third-party supplier Medis, global generic manufacturing operations, and the global generic R&D unit, as well as Allergan's international over-the-counter (OTC) commercial unit (excluding OTC eye care products) and certain established international brands.

Allergan retains its dynamic global branded pharmaceutical business powered by best-in-class products for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories. [AGN is also retaining its interest in the global FoB collaboration with AMGN.]

…Allergan plans to commence its previously announced share repurchase program under board authorization of up to $10 billion of the Company's common stock in the coming days. The Company expects to execute an initial $5 billion in open market repurchases over the remainder of 2016. If favorable market conditions persist, the Company will plan to repurchase the remaining $5 billion under the authorization.