Sagent Pharmaceuticals said today it has agreed to buy a portfolio of five Abbreviated New Drug Applications in the U.S. from Teva Pharmaceutical Industries for $40 million.

The deal is Teva’s second shedding of assets this week and was carried out as a precondition to Teva’s $40.5 billion acquisition of Allergan’s generics business, announced last year.

Sagent said the deal was designed to expand its portfolio, enhance operational performance through margin expansion, expand supply to existing customers, and enter into new channels and markets.

“This agreement is a perfect example of the implementation of our ‘Triple E’ growth strategy,” Sagent CEO Allan Oberman said in a statement. Under “Triple E,” Sagent has committed to expanding its product offerings, enhancing its operational performance, and executing on mergers and acquisitions (M&A) ultimately to drive long-term profitable growth.

The five ANDAs include Propofol Injectable Emulsion, 1%, a sedative used to induce and maintain general anesthesia during surgical procedures. Propofol is the generic equivalent of Fresenius Kabi’s Diprivan®.

Sagent launched Propofol in November 2013 through a supply and distribution agreement with Teva that had been set to expire in the second quarter of 2018. Sagent said it now accounts for approximately 12% market share of Propofol sales in the U.S.

According to Sagent, total market sales for the five ANDAs are $340 million on a trailing 12-month basis, per IMS Health. The portfolio is expected to generate $40 to $50 million in revenue on an annualized basis.

“We have built a strong collaborative partnership with Teva over the past several years and we are pleased to secure these significant products for the future, given that Propofol was our second largest selling product by revenue in 2015,” Oberman said. “We are excited to add these margin-enhancing assets to our robust portfolio and remain committed to pursuing similar accretive transactions.”

Sagent said it will finance the transaction through its existing $80 million revolving credit facility, which at present has no borrowings outstanding.

The deal is subject to the closing of the Teva/Allergan generics transaction, as well as approval by the U.S. Federal Trade Commission of Sagent as a buyer.

On Monday, Teva returned to Mesoblast full global development rights for its mesenchymal precursor cell (MPC) technology platform for cardiovascular indications, ending a collaboration launched in 2010.

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