Teva Pharmaceuticals, an Israeli company, announced today that it will acquire the generic drug division of Allergan for $40.5 billion in cash and stock. According to The New York Times, Dublin-based Allergan has been a major acquisitions player in recent years. The company announced a separate deal this past weekend to buy Naurex, a developer of drugs for depression and other central nervous system disorders, for $560 million. The Allergan generics transaction would create a company with an estimated revenue of $26 billion in 2016, including about $11 billion in sales outside the United States. As generic drug prices rise around the country, it is unclear whether the industry’s consolidation will depress costs for generics across the health care sector.
Read more from The New York Times here.