Teva to Acquire Mexico Drug Maker Rimsa for $2.3 Billion

Teva Pharmaceutical Industries Ltd. agreed to acquire Representaciones & Investigaciones Medicas SA, or Rimsa, for $2.3 billion, expanding the Israel-based drug maker's presence in Mexico.

Teva shares rose 1.9% to $57.55 in recent premarket trading.

Teva said in a news release on Thursday that Rimsa has an extensive portfolio of drugs, a promising drug pipeline and a well-established market presence to introduce additional Teva products in Mexico and Latin America. With the move, Teva said it also will become a leading pharmaceutical company in Mexico, a key emerging market.

Teva, the world's largest generic-drug company by sales, is in the process of making a much bigger acquisition that will put it among the biggest global drug makers—its pending $40.5 billion deal for Allergan PLC's generic business. Teva has been under pressure because its top-selling product, a brand-name multiple-sclerosis treatment called Copaxone, started facing lower-priced competition in the U.S. in June.

Rimsa generated revenue of $227 million in 2014, according to Teva.

Teva said the deal, which is expected to close early next year, is expected to start boosting earnings starting in the first quarter of 2017.

Write to Tess Stynes at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 01, 2015 09:35 ET (13:35 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.