Teva Buys Generics Firm Biocraft In USA

Israel's Teva Pharmaceuticals has agreed to purchase a major US manufacturer and marketer of generics, Biocraft, for $296 million in a share exchange deal. Both companies say that Biocraft shareholders will own a 10.7% stake in Teva, equivalent to about 6.6% of Teva's US depository shares once the transaction is completed. Biocraft shareholders will also receive 0.461 Teva shares for each outstanding share of Biocraft common stock.

The main shareholder in Biocraft is the Snyder family, with a 60% interest, and it already has an agreement with Teva to vote shares in favor of the merger. The combined operation, due to be completed in second-quarter 1996, will be led by William Fletcher, currently president and chief executive of Teva's existing US generics business, Lemmon Co.