Bayer HealthCare is buying Teva Pharmaceutical’s U.S.-based animal health business for $60 million up front, plus up to another $85 million in manufacturing and sales milestones. The deal, which is still subject to antitrust clearance, includes a manufacturing site in St. Joseph, Missouri, and about 300 employees.
Teva says selling off the business is in line with its strategy to focus on human health and the development of generic and branded drugs. “As part of our overall strategy to refine our global footprint, we will continue to leverage our product portfolio and R&D efforts while selling or outlicensing assets that no longer fit within the scope of our business,” notes Itzhak Krinsky, group executive vp and head of business development at Teva Pharmaceutical. “Today’s transaction represents a successful outcome for both parties and is a part of our global strategic planning...We are committed to making disciplined decisions that focus on our core businesses and strategically position the company as setting a new standard in both generic and branded medicines.”
Bayer HealthCare maintains taking on Teva’s the animal health operation will allow the expansion of its companion and food animal product lines in the U.S., including the introduction of anti-infectives and reproductive hormones. The Teva business will be integrated into Bayer’s own animal health business. “The businesses are a great strategic fit, and Teva’s animal health portfolio adds new depth for us across both the companion and food animal areas,” comments Ian Spinks, president and general manager at Bayer HealthCare Animal Health North America.