Teva to Purchase Barr

Jerusalem (July 18)-Teva Pharmaceutical Industries and Barr Pharmaceuticals (Montvale, NJ) signed a definitive agreement under which Teva will acquire Barr, the fourth-largest generic-drug company in the world. Teva will buy each share of Barr common stock for $39.90 in cash and 0.6272 Teva shares. Based on the closing price of Teva’s shares on July 16, 2008, the price per share of Barr common stock is $66.50, and the total value of the acquisition is $7.46 billion. Teva will assume Barr’s outstanding net debt of approximately $1.5 billion.

The purchase price represents a premium of 32% above Barr’s average daily closing price on the New York Stock Exchange for the 52-week period ending on July 16, 2008. The price is 42% above Barr’s closing price on July 16, 2008.

The acquisition will strengthen Teva’s market position in the US and bolster its position in European and Central and Eastern European markets, according to a company press release. The combined company will operate in more than 60 countries and employ approximately 37,000 people worldwide.

In addition, the merger will give Teva access to Barr’s development resources and extend Teva’s product portfolio and pipeline. The combination of Barr’s women’s-health portfolio and Teva’s respiratory franchise will bolster Teva’s specialty-pharmaceutical platform, increase Teva’s biologics capabilities, and enhance its balanced-business model. The combined company will have more than 500 marketed products, more than 200 abbreviated new drug applications pending with the US Food and Drug Administration, and annual sales greater than $120 billion.

Teva expects the transaction to deliver revenue and cost synergies based on operational efficiencies, increased scale, and geographic scope. The company anticipates that the transaction will generate at least $300 million in annual cost savings within three years and continue to provide additional cost savings through 2011.

The merger will enable Teva to exceed its five-year strategic plan to double revenues by 2012 to $20 billion, according to the company.

Both companies’ boards of directors unanimously approved the transaction. The acquisition is subject to approval by the stockholders of Barr, antitrust notification and clearance statutes in North America and Europe, and other customary conditions. The transaction is expected to close in late 2008.