Teva Pharmaceutical Industries said today it will sell its Actavis Generics assets and operations in the U.K. and Ireland to Accord Healthcare for £603 million ($762 million).
Teva’s deal with Accord Healthcare will include a portfolio of generic medicines plus a manufacturing plant in Barnstaple, England. Teva said it has already added to its existing operations several Actavis non-overlapping generic products, plus specialty medicines and over-the-counter products.
“With the assets that it will retain, Teva will create an even stronger operation in the U.K. and Ireland,” Siggi Olafsson, Teva’s president & CEO, Global Generic Medicines, said in a statement. That operation, he added, is buttressed by Teva’s status as the leading provider of medicines to the U.K. National Health Service.
Accord Healthcare is a subsidiary of Intas Pharmaceuticals, the largest privately held pharmaceutical company in India. Intas said in a separate statement that its European pro forma revenues will more than double, to above $500 million, as a result of the deal.
The deal is expected to close in the next 3 months, subject to final approval by the European Commission, and follows EC review of Teva’s now-completed purchase of Actavis Generics—the generics business of Allergan—for $39 billion.
Since that deal was first announced last year, Teva had been looking to sell assets in Europe as well as the U.S. and Middle East. Dr. Reddy’s Laboratories and Cadila Healthcare said in June they would buy generic products divested by Teva in the U.S.
Teva has also sought to grow its generics business through strategic acquisitions: A day after completing the Actavis Generics deal, Teva agreed to buy Allergan’s generic distribution business Anda for $500 million.