Teva Pharmaceutical Industries has withdrawn its proposal to acquire Mylan N.V. and instead plans to buy Allergan’s generic drug business for about $40.5 billion. Allergan will receive $33.75 billion in cash and $6.75 billion in shares of Teva. The agreement has been approved by the boards of both companies and is expected to close in the first quarter of 2016. Together, Teva and Allergan Generics will have a commercial presence in 100 markets, including a top-three leadership position in more than 40 markets.
“Through our acquisition of Allergan Generics, we will establish a strong foundation for long-term, sustainable growth, anchored by leading generics capabilities and a world-class late-stage pipeline that will accelerate our ability to build an exceptional portfolio of products, both in generics and specialty as well as the intersection of the two,” said Erez Vigodman, president and CEO of Teva. “Our respective portfolios of generic medicines and applications are highly complementary, providing Teva with high-quality growth and earnings visibility, and the scale and resources to expand upon our specialty capabilities.”