Bayer plans to buy Teva's U.S. veterinary business
Bayer HealthCare and Teva Pharmaceutical Industries have signed an agreement indicating that Bayer will acquire the U.S.-based animal health business of Teva for up to $145 million. The purchase price includes an upfront payment of $60 million plus a total of $85 million in payments linked to reaching manufacturing and sales targets.
The companies report that the acquisition allows Bayer to expand its companion and food animal product lines in the United States and reflects Teva’s commitment to focus its efforts on human health. The transaction, encompassing a manufacturing site in St. Joseph, Mo., and around 300 employees, is expected to close in 2013, subject to federal antitrust clearance and satisfaction of other conditions.
If approved, the acquisition will introduce a range of anti-infective products and reproductive hormones into Bayer’s livestock-oriented product offerings. It will also expand Bayer’s companion animal business to include dermatologic, pet wellness and nutraceutical products.
Teva’s portfolio of companion animal products includes the DVM Pharmaceuticals line of dermatology products, including Malaseb, HyLyt, Relief and others. The companion animal business also includes a broad line of nutraceuticals encompassing joint and gastro-intestinal products, including the Synovi brands. Food animal products acquired from Teva include anti-infectives, parasiticides, anti-inflammatory brands and reproductive hormones such as Prostamate and Ovacyst.