In the second animal health deal announced in two days, generic drug giant Teva Pharmaceutical Industries ($TEVA) says it will sell its animal products line to Bayer of Germany for $145 million so it can concentrate on human drugs.
The deal came a day after up-and-coming generic drugmaker Perrigo ($PRGO) announced that it was buying Sergeant's Pet Care Products, for $285 million.
Terms include $60 million upfront and up to $85 million in milestone payments dependent on the business hitting both manufacturing and sales targets. Bayer gets a portfolio that includes dermatology products sold under the DVM Pharmaceuticals brand, a line of nutraceuticals and a range of food animal products that include anti-infectives, in addition to parasiticides, anti-inflammatories and reproductive hormones such as Prostamate and Ovacyst. In a release, Bayer indicated that it is the food animal franchise that particularly interests it.
The deal includes a plant in St. Joseph, MO, with about 300 employees. Teva says it has been investing heavily in a phased renovation to upgrade its cGMP capabilities.
There is quite a bit of upheaval in the animal health industry these days. In addition to Perrigo getting into the business of selling to pet owners, Pfizer ($PFE) is spinning its animal health division off and, because of production issues, Novartis ($NVS) has been losing market share.
- here's the release