Teva, Looking to Close Actavis Deal, Sells $40 Million Portfolio to Sagent

   By Brittney Laryea 
 

Hospital pharmaceutical provider Sagent Pharmaceuticals Inc. said Thursday it will buy a portfolio of five abbreviated new drug applications from Teva Pharmaceutical Industries Ltd. and Actavis LLC, Allergan PLC's generics unit, for $40 million.

Teva and Allergan are in the process of divesting the drug applications as part of Teva's $40.5 billion cash-and-stock acquisition of Allergan's generic medicine business, Actavis Generics.

Teva's purchase of Allergan's generics unit was initially set to be completed by May 2, but was delayed in March because of difficulty getting approval from U.S. federal regulators. Analysts said the delay may have indicated a need for the companies to divest more products to convince regulators to approve the deal.

Sagent's all-credit purchase includes the drug Propofol, which Sagent had been distributing in conjunction with Teva. Sagent Chief Executive Allan Oberman said Propofol was the company's second-largest selling product by revenue in 2015. Sagent said it expects the additions to its portfolio to contribute $40 million to $50 million of revenue per year.

Mr. Oberman said the buy is part of the drug company's growth strategy. The acquisition is contingent on the closing of the Teva-Allergan transaction.

Sagent's stock has risen 24% over the past month and edged up 0.4% Thursday. Shares of Teva fell 1.3% Thursday to $51.70.

Write to Brittney Laryea at [e-mail]

(END) Dow Jones Newswires

June 16, 2016 10:52 ET (14:52 GMT)

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