Here’s some news from the battle front between two giant generic drugmakers, Israel-based Teva Pharmaceuticals and Netherlands-based Mylan N.V.:
Teva announced Tuesday the completion of the acquisition of Auspex Pharmaceuticals, through the successful tender offer of $101.00 per share in cash for all of the outstanding shares of Auspex, representing approximately $3.2 billion in enterprise value and approximately $3.5 billion in equity value.
Teva said in a statement the acquisition is expected to enhance its revenue and earnings growth profile and strengthen its “core central nervous system franchise.”
Meanwhile, across the trench lines, being so busy trying to buy Ireland-based drugmaker Perrigo, and fending off Teva’s clumsy attempts at a takeover, Mylan on Tuesday reported disturbingly low profits for the first quarter—a whopping 51 percent drop to $56.6 million, down from $115.9 million a year earlier.
CEO Heather Bresch said Tuesday that Mylan’s profits will soar once again, as soon as they take over Perrigo. “We have long believed the combination of Perrigo and Mylan represents an extraordinary opportunity,” She said at a conference call with analysts.
If Perrigo disappears as an independent entity, the Tel Aviv Stock Exchange would be losing its second largest company.
Perrigo has been the only non-Israeli company traded in Tel Aviv. It means the loss of some 20 percent of the business, according to local brokers.
Auspex is a biopharmaceutical company specializing in creating novel therapies, most notably potential treatment for Huntington’s disease, tardive dyskinesia, and Tourette syndrome.
“We believe that combining the Auspex portfolio with our strong research and commercialization capabilities will unlock significant value for Teva’s shareholders,” Erez Vigodman, President and CEO of Teva said in a statement. “We are proud and excited to continue to work to bring innovative treatments to the underserved movement disorder markets.”
Teva must boost its offerings to shareholders before September, when patent protection expires on its multiple sclerosis treatment Copaxone, which accounts for half of its profits.