Teva positioned to make significant gains from Allergan deal; report

Israel-based Teva Pharmaceutical Industries (NYSE: TEVA) is well positioned to make a substantial return on investment from the acquisition of Allergan’s (NYSE: AGN) generics business, research and consulting firm GlobalData has said. Teva has indicated the deal will lead to annual cost synergies and tax savings of about $1.4 billion.

GlobalData’s deals analyst, said: “The transaction will serve to offset Teva’s forthcoming revenue shortfall from generic entry to Copaxone (glatiramer acetate), its flagship multiple sclerosis treatment and primary sales generator.”

GlobalData notes the transaction will help offset Teva’s forthcoming revenue shortfall from generic entry to Copaxone, its flagship multiple sclerosis treatment and primary sales generator. The research firm said the deal will allow Allergan to concentrate on its pharmaceutical business, which boasts higher profit margins than generics.