- Pre-Market Indications

Friday, July 18, 2008

Teva to buy Barr for $7.46 billion, boost generic lead

We have another cash and stock deal, two this week!!.

BRL is gapping up nicely and could be another great fade opportunity.

NEW YORK (Reuters) - Teva Pharmaceutical Industries (TEVA.O: Quote, Profile, Research) (TEVA.TA: Quote, Profile, Research) said on Friday it would buy rival generic drugmaker Barr Pharmaceuticals Inc (BRL.N: Quote, Profile, Research) for $7.46 billion to expand its leadership in the U.S. market and fortify its presence in Europe.

The deal is the latest in a wave of consolidation in the generic-drug sector that some analysts suspect will result in only a handful of major global players.

Israel-based Teva, the world's largest generic drug company, plans to buy New Jersey-based Barr for $66.50 per share in cash and stock.

The price represents a 42 percent premium to Barr's closing price on Wednesday. Barr shares rose 22 percent on Thursday on reports of a Teva acquisition.

In pre-market trading on Friday, Barr shares rose 6.7 percent to $60.99, while Teva shares fell 4.4 percent to


The combined company would be a generic powerhouse employing about 37,000 people globally and operating directly in more than 60 countries. Together, Barr and Teva had revenue of about $11.9 billion in 2007.

By acquiring Barr, No. 5 in the U.S. in generic prescriptions, Teva would move closer to its stated goal of boosting its U.S. market share to 30 percent of generic prescriptions by 2012, from about 20 percent. Continued...

Teva to buy Barr for $7.46 billion, boost generic lead | Reuters

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