Teva closes SICOR acquisition
Industries has completed its $3.4 billion takeover of US company
SICOR, which makes generics and active pharmaceutical ingredients.
The Israeli firm has also said that a finance subsidiary is making an offering of $1 billion in debentures, due 2024. Teva expects to use the net proceeds from the offering to refinance short-term bank borrowings incurred to pay a portion of the purchase price for SICOR.
SICOR brings to Teva a complementary stable of generics, but also the capability to manufacture biogenerics. This is an area with significant long-term growth potential; there are currently no approved biogenerics in the world's main pharmaceutical markets, mainly because of the difficulties in mapping out a regulatory route for their approval.
The acquisition will also give Teva a strong position in the field of injectable generics. Last year, around three quarters of SICOR's $455 million (€366m) turnover came from its injectable operations. The Israeli firm also has a growing API business, providing another strategic fit from the merger.
