Teva to acquire Copley for $220 million

Israeli drugmaker Teva says that its US subsidiary has signed adefinitive agreement to acquire all the outstanding shares of US generics drugmaker Copley Pharmaceuticals for $11 per share in cash, giving the transaction a value of approximately $220 million. In connection with the deal, Teva-USA has entered into an agreement with Hoechst, the holder of approximately 52% of Copley's outstanding shares, under which the latter has agreed to tender its shares in the offer. Hoechst has been trying for some time to get out of generics and other low-profit ingredients businesses, and this is about the last step.

Eli Hurvitz, chief executive of the Teva group, said that the merger will strengthen the company's position in the US generics market and Copley will bring with it personnel, facilities and "an existing product line and a development pipeline which will complement our existing operations in the USA." Mr Hurvitz' counterpart at Copley, Daniel Korpolinski, said being a first-tier firm is essential to success in this industry, "and joining with one of the world's largest multisource pharmaceutical companies fulfills that objective."