SHAWNEE, Kan. and JERUSALEM — Bayer HealthCare LLC and Teva Pharmaceutical Industries Ltd. say they have signed an agreement in which Bayer will acquire the U.S. based animal health business of Teva for up to $145 million.
The purchase price includes an upfront payment of $60 million plus a total of $85 million in milestone payments, which are linked to the successful and timely achievement of manufacturing and sales targets. The acquisition allows Bayer to expand its companion and food animal product lines in the United States by integrating the acquired assets into its animal health business. The transaction reflects Teva''s commitment to focus its efforts on human health and its core expertise of providing generic and branded medicines to patients around the world. The transaction, encompassing a manufacturing site in St. Joseph, Missouri and around 300 employees, is expected to close in 2013, subject to antitrust clearance and satisfaction of other conditions.
If approved, the acquisition will further strengthen Bayer''s food animal franchise, bringing a range of anti-infective solutions to treat infections in livestock populations and introducing reproductive hormones to Bayer''s product offerings. Additionally, it will broaden Bayer HealthCare Animal Health''s growing companion animal business by expanding its current offerings to also include dermatological, pet wellness and nutraceutical products.
Teva Animal Health''s portfolio of companion animal products features a full line of dermatology products sold under the DVM Pharmaceuticals brand, including such products as Malaseb, HyLyt, Relief and others. The companion animal business also has a broad line of nutraceuticals encompassing joint and gastro-intestinal products, including the Synovi brands. Food animal products acquired from Teva include a broad range of anti-infectives, in addition to parasiticides, anti-inflammatory brands and reproductive hormones such as Prostamate and Ovacyst.