The Isreali based Teva Pharmaceuticals has agreed to purchase Barr Pharmaceuticals, of New Jersey for approximately $7.5 billion and in addition will assume $1.5 billion in debt.
Both companies are manufacturers of generic drugs but with Teva facing a wave of patent infringement suits, the company is looking to expand upon its existing proprietary medications. Currently Teva has 300 generic drugs and 3 proprietary drugs (brands of its own). One for Multiple Sclerosis, one for Parkinson's and one for asthma. Barr Pharmaceuticals has a host of branded drugs, mostly in women's health products such as Plan B, an emergency contraceptive, Seasoniques, an oral contraceptive and Paragard, a long-term, non-hormonal contraceptive.
The deal is expected to close in late 2008 and the $7.5 billion purchase price values Barr at $69.44 per share which is a 48% premium over closing price on July 16. Friday's closing has Barr valued at $63.43 up $6.26 from the previous day's closing.
[Source: Forbes]
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