Teva Makes $26M Bid For Majority Stake In Biogal

Israeli drugmaker Teva Pharmaceutical Industries, through a wholly-owned European subsidiary, has made an offer to acquire a 78% stake in Hungary's Biogal Pharmaceutical, said to be for around $26 million (but subject to adjustment after review of audited financial statements); such a move had been expected (Marketletter October 9). The closing of the deal is subject to several conditions, including the conclusion of an agreement which will define a reorganization plan for Biogal.

With sales of 10.5 billion forints (around $102 million) for 1994, Biogal is one of the largest pharmaceutical companies in Hungary, producing both finished dose and bulk pharmaceuticals for human use. For the nine months to end September, Biogal's sales reached 7.3 billion forints ($62 million; exchange rates are based on averages of the respective period) and its net income for the nine months amounted to some 207 million forints.

On completion of the acquisition, Teva will integrate the activities of its existing Hungarian marketing company with Biogal. This will create a single platform that will also enable the launch and marketing of Copaxone (copolymer 1), Teva's multiple sclerosis treatment, in Hungary.