Teva to Acquire Mexico Drug Maker Rimsa for $2.3 Billion
October 01 2015 - 9:50AM
Dow Jones News
Teva Pharmaceutical Industries Ltd. agreed to acquire
Representaciones & Investigaciones Medicas SA, or Rimsa, for
$2.3 billion, expanding the Israel-based drug maker's presence in
Mexico.
Teva shares rose 1.9% to $57.55 in recent premarket trading.
Teva said in a news release on Thursday that Rimsa has an
extensive portfolio of drugs, a promising drug pipeline and a
well-established market presence to introduce additional Teva
products in Mexico and Latin America. With the move, Teva said it
also will become a leading pharmaceutical company in Mexico, a key
emerging market.
Teva, the world's largest generic-drug company by sales, is in
the process of making a much bigger acquisition that will put it
among the biggest global drug makers—its pending $40.5 billion deal
for Allergan PLC's generic business. Teva has been under pressure
because its top-selling product, a brand-name multiple-sclerosis
treatment called Copaxone, started facing lower-priced competition
in the U.S. in June.
Rimsa generated revenue of $227 million in 2014, according to
Teva.
Teva said the deal, which is expected to close early next year,
is expected to start boosting earnings starting in the first
quarter of 2017.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 01, 2015 09:35 ET (13:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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