Teva to buy Allergan’s Anda distribution business for $500m

Anda is currently the fourth-largest distributor of generic pharmaceuticals in the US. It delivers generic, brand, specialty, and over-the-counter pharmaceutical products from over 300 manufacturers to pharmacies.

Under the deal, Teva will buy three distribution centers in Olive Branch, Mississippi, Weston, Florida, and Groveport, Ohio.

Until the completion of transaction, Anda will operate as a stand-alone business and report to Siggi Olafsson, president and CEO of Teva’s global generic medicines group.

The deal is subject to regulatory approval and other closing conditions and is anticipated to close in the second half of this year.

Olafsson said: “The addition of Anda and their ability to service over half of their 60,000 customers within 24 hours, combined with our existing offerings, will allow us to provide even better service to our customers.”

Anda is estimated to generate over $1bn in third-party net revenue for the full year 2016.

Allergan said it will report its Anda business as discontinued operations starting with its second quarter 2016 earnings report.

For the second quarter of this year, Anda is expected to contribute about $375m in net revenues excluding sales of Allergan's branded products and around $0.05 in earnings per share.

Allergan has recently sold its global generic pharmaceuticals business to Teva Pharmaceutical Industries.