Sagent To Acquire Five ANDAs from TevaBy
Sagent Pharmaceuticals has agreed to acquire a portfolio of five abbreviated new drug applications (ANDAs) in the US from Teva Pharmaceutical Industries for $40 million. The acquired portfolio includes products that are being divested by Teva as a precondition to its closing of the acquisition of Allergan’s generics business.
The total market sales for the five ANDAs is $340 million on a trailing 12-month basis based on IMS estimates. The portfolio is expected to generate $40 to $50 million in revenue on an annualized basis, and includes propofol injectable emulsion, 1% as one of the products. Sagent’s distribution agreement with Teva for propofol was set to expire in the second quarter of 2018. Sagent currently accounts for approximately 12% market share of propofol sales in the US, according to the company.
Sagent will finance the transaction through its existing $80 million revolving credit facility, which currently has no borrowings outstanding. The acquisition of these ANDAs is contingent on the closing of the Teva/Allergan generics transaction and approval by the US Federal Trade Commission of Sagent as a buyer.
Source: Sagent Pharmaceuticals