Teva acquisition of Barr cleared in US, Europe
December 22, 2008
Teva Pharmaceutical Industries Ltd announced that regulators are ordering the company to divest several generic drugs in order to complete its purchase of rival Barr Pharmaceuticals, according to the Associated Press. Teva is in the process of buying Montvale, N.J.-based Barr for nearly $9 billion in a move that will boost its dominance as the world''s largest generic drugmaker. The company claims that authorities in the U.S. and Europe cleared the transaction-under the condition Teva and Barr divest several overlapping products. In the U.S., the Federal Trade Commission ordered the company to give up 16 generic drugs worth $60 million in annual sales. The drugs include popular treatments used to treat diabetes, depression and acid reflux disease, according to an FTC release. The rights to those drugs will be divided between competitors Watson Pharmaceuticals and Qualitest Pharmaceuticals. Teva also must divest 13 generic drugs that are in development. The companies said they have received all the necessary regulatory permissions and expect the transaction to close this week.