Teva sells castoffs to Impax for $586M as clock ticks on Allergan deal

Teva

Teva, which is looking to close a $40 billion-plus deal for the generics arm of rival Allergan ($AGN), struck a pair of divestment deals over the past couple of weeks. But it didn’t stop there.

On Tuesday, Impax Laboratories ($IPXL) announced that it, too, was getting in on the action. The Hayward, CA-based company agreed to pay $586 million for a bundle of Teva's ($TEVA) assets.

With the transaction, Impax will grab a range of the Israeli drugmaker's products, which span various stages of development and regulatory progress. It’s set to pick up 15 already marketed generics, plus three others close to market--one approved generic and two approved dosages of a currently marketed product that haven’t yet launched. The deal also covers one copycat med and another dosage of a currently marketed drug, both awaiting the FDA’s green light. And then there are full commercial rights to Impax’ own pending app for a knockoff of Johnson & Johnson’s ($JNJ) ADHD med Concerta, on which it had previously partnered with Teva, and one generic candidate still in development.

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It’s a significant get for Impax, which will soon be the proud owner of a portfolio that generated $150 million in 2015 net sales and about $100 million in gross profit last year.

And Teva’s hoping it’s a significant step toward closing a deal that has garnered serious antitrust scrutiny since it was announced last summer. Already this month, the Petah Tivka-based drugmaker has agreed to sell off 5 unapproved generics to Schaumburg, IL’s Sagent Pharmaceuticals, as well as a basket of 8 meds to India’s Dr. Reddy’s ($RDY) for $350 million.

Missing from the party, though, has been Mylan ($MYL), despite analyst predictions that it would score more products as Teva pruned its lineup. Last November, Mylan lost out on a hostile quest for Ireland’s Perrigo ($PRGO)--which some speculate began as an effort to ward off its own hostile suitor, Teva.

But while Mylan may not have snapped up any of Teva’s castoffs, it’s still been active at the M&A table. It recently unveiled a $1 million accord to buy some topical skin treatments from Renaissance Acquisition Holdings, and back in February, it inked a $7.2 billion pact to buy Sweden’s Meda.

- read Impax's release 

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

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