Mr Erez Vigodman, president & CEO, Teva Pharmaceutical Industries
In Jerusalem, it is 8:45AM on the morning of Tuesday, April 21, 2015, when Israeli pharma behemoth, Teva Pharmaceuticals, officially announced on its website, its proposal to acquire its long-time arch rival Mylan, a thriving global generics manufacturer.
The big deal
The new deal on the block has shaken the pharmaceutical industry worldwide since it would create a global generics powerhouse, with the combined Teva-Mylan entity having approximately $30 billion in pro forma 2014 annual sales, and boasting a pipeline of more than 400 pending generic drug applications at the US Food and Drug Administration (USFDA).
"The combined entity would be well positioned to transform the global generics space and would be able to leverage its significantly more efficient and advanced infrastructure, with an enhanced scale, production network, end-to-end product portfolio, commercialization capabilities, and geographic reach," said Mr Gianfranco Zeppetelli, deals analyst, GlobalData, a global research and consulting firm.
The bid has also initiated worries of a possible increase in the generic drug prices. Mylan is said to be the current US leader in the world's largest generics prescription market, recording a total revenues of $7.7 billion in the fiscal year (FY) 2014.