Pharma BD Deal Intelligence
Widely regarded as one of the worst pharma M&A deals in history: Teva overpaid ~$40.5B for Allergan's generics business (incl. Anda), loaded up to ~$35B in debt, then took a $17.1B impairment in 2017, slashed its dividend 75%, saw its CEO ousted, and spent nearly a decade in restructuring/survival mode.
Full analysis, sources & comparables →Brent Saunders: 'Teva is one of Anda's most important suppliers, enhancing the significant strategic fit of Anda within Teva's business,' framing the…
Teva to buy Allergan's U.S. distribution business Anda for $500 million, a day after closing its $40.5 billion acquisition of Allergan's generics portfolio.
Teva completes its $500 million acquisition of Anda Inc., factual confirmation that the generics distribution deal closed as planned.
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One day after closing the Actavis Generics acquisition, Teva also acquired Allergan's Anda Inc., the 4th-largest U.S. distributor of generic pharmaceuticals, for $500M cash. Strategic complement to Actavis generics manufacturing, providing direct distribution to U.S. pharmacies and providers.
Widely regarded as one of the worst pharma M&A deals in history: Teva overpaid ~$40.5B for Allergan's generics business (incl. Anda), loaded up to ~$35B in debt, then took a $17.1B impairment in 2017, slashed its dividend 75%, saw its CEO ousted, and spent nearly a decade in restructuring/survival mode.
Assessment window: 5yr post-close.
$1.0B Anda projected 2016 third-party net revenue (>$1B)
Anda Inc. is a US generic and specialty pharmaceutical distributor serving independent and chain pharmacies, hospitals, nursing homes, mail-order pharmacies, clinics, and physician offices. At deal time it was the 4th-largest US generic distributor, sourced from 300+ manufacturers, and operated three distribution centers projecting >$1B in 2016 third-party net revenue.
US pharmaceutical distribution is dominated by the Big Three — McKesson, AmerisourceBergen, and Cardinal Health — which together control roughly 90% of branded distribution. Anda sits in the smaller, generics-focused tier alongside HD Smith (acquired by AmerisourceBergen 2018), Morris & Dickson, and Smith Drug, serving independents and alternate-care channels the Big Three under-penetrate. By acquiring Anda one day after closing the $33-40B Actavis Generics deal, Teva vertically integrated its newly-enlarged generics manufacturing platform with a captive direct-to-pharmacy distribution channel — bypassing wholesaler margin and shoring up service to >60,000 customers within 24 hours. The strategic rationale was twofold: (1) Anda was already a major Teva customer, so internalizing it preserved a key channel from competitor capture, and (2) it enabled the $1.4B annual synergy program by 2019 and provided shelf-space defense for Teva's 338 pending ANDAs and 115 first-to-file opportunities. For Allergan it crystallized the 'pure-play branded growth pharma' pivot CEO Brent Saunders had been executing.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Teva Pharmaceutical Industries Ltd. / Allergan plc (Anda Inc.) (this deal) | 2016 | $500M | 20 |
| Teva Pharmaceutical Industries Ltd. / Auspex Pharmaceuticals | 2015 | $3.5B | 86 |
| Teva Pharmaceutical Industries Ltd. / Biogal Pharmaceutical | 1995 | — | 82 |
| Teva Pharmaceutical Industries Ltd. / Sicor Inc. | 2003 | $3.4B | 68 |
| Teva Pharmaceutical Industries Ltd. / Ivax Corporation | 2006 | $7.4B | 63 |
| Teva Pharmaceutical Industries Ltd. / Novopharm Limited | 2000 | $600M | 62 |
| Teva Pharmaceutical Industries Ltd. / Ivax Corporation | 2005 | $7.4B | 62 |
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