Teva Gets Clearance From The U.S. FTC For Actavis Generics Acquisition

(RTTNews) - Teva Pharmaceutical Industries Ltd., (TEVA) and Allergan plc (AGN) announced that the U.S. Federal Trade Commission or FTC has accepted the proposed consent order in connection with the pending acquisition of Allergan's generics business by Teva Pharmaceutical Industries Ltd.

With the acceptance of the proposed consent order, Teva has satisfied the regulatory approval requirements under the purchase agreement to complete the acquisition of Actavis Generics.

Once the transaction is completed, Teva will have approximately 338 product registrations pending FDA approval and will hold the leading position in first-to-file opportunities with approximately 115 pending ANDAs in the U.S. Additionally, Teva will have a commercial presence across 80 markets, including a top-three leadership position in over 40 markets.

The transaction is expected to achieve $1.4 billion in operational and tax synergies achievable by the end of 2019. It is significantly accretive to non-GAAP EPS, with approximately 14% accretion in 2017 and 19% accretion in 2019, and is expected to generate 9.3% ROIC by the end of 2019. The combined company is expected to generate more than $25 billion of free cash flow from deal close to the end of 2019, which will allow for rapid deleveraging and give Teva the ability to pursue acquisitions of attractive branded and pipeline assets as well as deals that further expand the company's footprint in key growth markets.

The transaction is expected to close next week.