Bayer HealthCare LLC has signed an agreement to acquire Teva Pharmaceutical’s U.S. animal health business for as much as $145 million, which includes a $60 million upfront payment and a total of $85 million in milestones associated with manufacturing and sales targets. The acquisition expands Bayer’s companion and food animal product lines in the U.S. Teva plans to focus its efforts on human health and its core expertise in generic and branded medicines. The transaction, which includes a manufacturing site in St. Joseph, MO and approximately 300 employees, is expected to close in 2013.
“We are pleased with the sale of our animal healthcare business to Bayer HealthCare, a leader in animal healthcare,” said Itzhak Krinsky, group executive vice president and head of business development of Teva Pharmaceutical Industries. “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. 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 out-licensing assets that no longer fit within the scope of our business.”
“Bayer’s acquisition of Teva Animal Health will further strengthen and broaden our U.S. range of animal care solutions so that, together with our customers, we can continue to protect, cure and care for animals across America,” said Ian Spinks, president and general manager, Bayer HealthCare Animal Health North America. “The businesses are a great strategic fit. Teva’s animal health portfolio adds new depth for us across both the companion and food animal areas. We believe it will be a win-win for both our customers and our combined employee bases.”