Cipla, Aurobindo Pharma acquire products divested by Teva in US1 min read . Updated: 29 Jul 2016, 01:40 PM IST
Teva Pharmaceutical Industries indicated that the divestment of overlapping products is expected to generate about $2.9 billion
Hyderabad: Cipla Ltd, India’s fifth largest drug maker, on Thursday announced that it has acquired a portfolio of three products from Teva Pharmaceutical Industries Ltd in the US, which are being divested by the Israel-based company as a precondition to its $40.5 billion acquisition of Allergan Plc’s generic business.
The spokesperson for Cipla confirmed the purchase without disclosing financial and product details.
According to the US Federal Trade Commission (FTC), Hyderabad-based drug maker Aurobindo Pharma Ltd was also among the 11 firms that agreed to acquire 79 existing and future drugs, from Teva.
An Aurobindo Pharma spokesperson declined to comment.
Teva indicated in its latest investor presentation that the divestment of overlapping products is expected to generate about $2.9 billion.
Earlier Mint reported that Aurobindo is among the firms bidding for over $1 billion of Teva’s assets, being divested by the company in the UK, Ireland and Iceland to consummate the buyout of Allergan’s generic business.
In June Dr. Reddy’s Laboratories Ltd and Cadila Healthcare Ltd (Zydus Cadila) announced that they will buy products divested by Teva in the US.
Dr Reddy’s said it will acquire a portfolio of eight abbreviated new drug applications (ANDAs) from Teva for $350 million, while Zydus Cadila said it had bought two ANDAs without disclosing the financial details.
On Thursday, the US FTC approved Teva’s purchase of Allergan’s generic drug-making unit after the companies agreed to the biggest divestment ever in the wake of a pharmaceutical merger.
FTC has given the companies 10 days to complete the divestment.
“Some good generic assets were put on the block due to the regulatory necessity to divest," said Sujay Shetty, leader, pharma, life sciences and medical devices sector for PwC India, referring to Teva-Allergan deal.
“It opened up opportunities for Indian companies to fill gaps in their portfolios and gain traction in the US market," Shetty said.
Another analyst tracking the sector said that the impact of the acquired products on US sales could take some more time, as some of them are yet to get approved by the US Food and Drug Administration (USFDA).
“The impact of these products will be felt from next financial year, though a few of them could start delivering in second half," said Siddhant Khandekar, associate vice-president, research, ICICI Securities Ltd.