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NEW YORK — Another large deal has been struck between Allergan plc and Teva Pharmaceutical Industries Ltd.
The companies on Wednesday announced the sale of Allergan’s Anda Inc. distribution business to Teva for $500 million. That came a day after they reported the close of Teva’s $39 billion acquisition of the Allergan’s legacy Actavis generics business.
Anda is the fourth-largest generic drug supplier in the U.S.
Weston, Fla.-based Anda distributes generic, branded, specialty and over-the-counter drugs from more than 300 manufacturers to independent and chain pharmacy retailers, nursing homes, mail-order pharmacies, hospitals, clinics and doctor’s offices across the United States. Its over 13,000 products in stock also include vaccines, injectables, medical and surgical supplies, vitamins and pet medications.
The fourth-largest U.S. generics supplier, Anda is expected to total more than $1.5 billion in third-party net sales in 2016.
With the deal, Teva will acquire Anda’s three distribution centers in Olive Branch, Miss.; Weston, Fla.; and Groveport, Ohio, and their over 650 employees.
“The sale of Anda to Teva Pharmaceuticals is a strategic transaction that benefits Allergan and the employees and customers of the Anda business,” stated Brent Saunders, Allergan president and chief executive officer. “For Allergan, this divestiture continues our evolution as a focused, branded growth pharma leader, powered by growing leadership positions across our seven therapeutic areas, developing and bringing to market innovative therapies from our industry-leading pipeline, simplified operating structure and adding new development programs through our Open Science R&D model.”
“The Anda team has played a supporting role in launching brand and generic products, such as Allergan’s Vraylar and Liletta and Actavis’ generic Crestor. Teva is one of Anda’s most important suppliers, enhancing the significant strategic fit of Anda within Teva’s business,” Saunders added. “We are thrilled for the employees of the Anda business, as their talents and contributions will continue to be a critical strategic element of the most important generic pharmaceuticals company in the United States.”
Allergan said that until the transaction is finalized, it will continue to operate Anda in a business-as-usual mode, provide full support to manage the business, introduce new products and maximize its partnerships with customers.
“Joining Teva opens a new world of possibilities for Anda, especially as the appropriate utilization of generic medicines remains the most effective means by which to ensure broad patient access,” commented Anda president and CEO Charles Phillips. “We look forward to the opportunity to utilize the Teva network to the advantage of our customers and patients across the country.”
Plans call for Anda to operate as a stand-alone business and report Siggi Olafsson, president and CEO of global generic medicines at Teva.
“Anda is a natural fit into our business in general and our extensive supply chain network in particular. We believe Anda is truly a unique company which further enhances the offerings that Teva can provide. This strategic move enables us and our customers to improve capabilities and flexibility, given the changes the pharmaceutical industry is currently undergoing, in order to provide access to more patients throughout the country. Additionally, both Teva and Anda’s customers will benefit from our ability as the largest producer of medicines in the world to leverage our size and scale,” according to Olafsson.
“The addition of Anda and their ability to service over half of their 60,000 customers within 24 hours, combined with our existing offerings, will allow us to provide even better service to our customers,” he added.
Allergan plans to report its Anda business as discontinued operations as of its second-quarter 2016 earnings report. The sale transaction is expected to be completed in the second half of 2016, pending regulatory approval and customary closing conditions.
