Analyst cuts Allergan generics sales estimates as Teva deal close nears

Teva

Teva is jumping through hoops to close its $40 billion-plus deal for Allergan’s generics unit--but when it does, it may not be raking in as much as analysts initially thought.

Deutsche Bank Thursday lowered its sales estimates for the unit--dubbed Actavis Generics--by about 8% to reflect Q1 sales that came in about 20% below where they were last year.

Teva’s investors shouldn’t panic, though. The Israeli drugmaker has said it expected that sales drop, considering the strength of last year’s Q1. And DB’s Gregg Gilbert pointed out some bright spots for the generics giant, too: It trimmed SG&A estimates for Actavis Generics, and it raised its U.S. sales estimates for Teva’s branded blockbuster Copaxone, too.

Watch the Free Webinar

Chemistry Through Biology: Translating Molecular Biology Technologies into Practical Processes for API Production

Learn about the key advances and critical hurdles in transforming emerging molecular biology technologies into practical applications with commercially viable processes.

Teva has been working hard to usher the Allergan deal--struck last summer--through the door, but a close look from antitrust regulators has been holding things up. Bernstein analyst Ronny Gal, though, has said the acquisition still looks as though it’s on track to close this month, and the pharma has already struck a pair of deals within the past week to clear FTC hurdles: Thursday, Schaumburg, IL’s Sagent Pharmaceuticals agreed to shell out $40 million for a portfolio of 5 generics not yet FDA-approved, and Saturday, Dr. Reddy’s inked a $350 million pact to acquire 8 meds from the Petah Tivka-based company.

Pharma deals lately have come under the antitrust lens more often than mergers in other industries, according to a Bloomberg analysis released last week. The FTC reviewed drugmakers’ tie-ups at about three times the rate of other transactions--in part because the recent trend toward skyrocketing drug prices.

- read Sagent's release 

Special Reports: Top 20 generics companies by 2014 revenue - Teva - Allergan

Related Articles:
Pharma deals get extra FTC scrutiny--but it hasn't stopped rising drug costs: Bloomberg​
Teva, Allergan generics deal on track to close in June: Analyst
Teva hits roadblock in Allergan buy, hindering 'Pfizergan'
Teva speeds toward Allergan deal close with EU thumbs up
Teva's Copaxone finally succumbs to copycats, putting a drag on 2015 sales
Forget Mylan: Teva inks $40B-plus pact for Allergan's generics biz

Suggested Articles

Which rollouts might suffer most? Those that treat chronic diseases, require doctors to administer them or face current competition, analysts say.

Novartis and Incyte will put their blockbuster JAK inhibitor into phase 3 clinical trials as a possible treatment for COVID-19, the drugmakers said.

The Cannes Lions canceled its advertising creativity conference for 2020 after media reports that many large ad agencies planned to opt out.