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Teva to acquire Germany's ratiopharm
March 18th, 2010
JERUSALEM, Israel – Teva Pharmaceutical Industries Ltd. plans to acquire ratiopharm, Germany's second-largest generic drug maker and the sixth-largest generics company worldwide, in a deal valued at 3.6 billion euros ($5.1 billion).
Pending regulatory and other approvals, the agreement is slated to close by the end of this year, according to Teva. The company said that on a pro forma basis the combined entities would have had 2009 revenue of $16.2 billion.
Teva reported that the acquisition will position it as the leading generic pharmaceutical company in Europe, increasing its European business from sales of $3.3 billion in 2009 to joint pro forma sales of $5.2 billion.
Ratiopharm's portfolio includes 500 molecules in over 10,000 presentation forms covering all major therapeutic areas marketed in 26 countries, and the company has valuable know-how in biosimilars, consisting of a number of products in advanced stages of development and a well-established sales and marketing team, according to Teva.
"This is an important acquisition for Teva. This transaction is perfectly aligned with our long-term strategy in which Europe is an important pillar and growth driver," Shlomo Yanai, Teva's president and chief executive officer, said in a statement. "Ratiopharm will provide us with the ideal platform to strengthen our leadership position in key European markets, most notably in Germany, as well as rapidly growing generic markets such as Spain, Italy and France."
Teva said that with the acquisition, it will become the No. 2 player in Germany's generic drug market, the world's second largest. The combined entity will have 40,000 employees globally, of which 18,000 will be based in Europe. Ratiopharm's current headquarters in Ulm will be the German headquarters for the merged entity.