Pharma BD Deal Intelligence

Teva Pharmaceutical Industries Ltd. / Allergan plc (Anda Inc.)

2016 · Asset Purchase · $500M · Complete

WRONG BY 51 POINTS

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.

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The coverage arc

Aug 03, 2016 Allergan plc (PR Newswire) Bullish

Brent Saunders: 'Teva is one of Anda's most important suppliers, enhancing the significant strategic fit of Anda within Teva's business,' framing the…

Aug 03, 2016 Bloomberg Law Neutral

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.

Oct 03, 2016 DCAT Value Chain Insights Neutral

Teva completes its $500 million acquisition of Anda Inc., factual confirmation that the generics distribution deal closed as planned.

Source summaries from our enrichment pipeline; follow links for originals.

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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.

Did it work? Outcome assessment

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.

Strategic verdict
Failed to Achieve
Financial impact
Neutral

Key facts

Related deals — scored

DealYearValueOutcome
Teva Pharmaceutical Industries Ltd. / Allergan plc (Anda Inc.) (this deal)2016$500M20
Teva Pharmaceutical Industries Ltd. / Auspex Pharmaceuticals2015$3.5B86
Teva Pharmaceutical Industries Ltd. / Biogal Pharmaceutical199582
Teva Pharmaceutical Industries Ltd. / Sicor Inc.2003$3.4B68
Teva Pharmaceutical Industries Ltd. / Ivax Corporation2006$7.4B63
Teva Pharmaceutical Industries Ltd. / Novopharm Limited2000$600M62
Teva Pharmaceutical Industries Ltd. / Ivax Corporation2005$7.4B62

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