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news.A deal has been reached by Barr Pharmaceuticals to acquire 92% of shares in Croatia drug maker Pliva, making it the third largest generic drug manufacturer in the industry.
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The agreement will give Barr a strong position in the biopharmaceutical market and will give the company access to new drug delivery technologies. The agreement will also provide Barr with a position in Europe, an area it has not previously exploited.
Under the terms Barr has acquired Pliva for $2.5 billion. The transaction is expected to close by October 25, 2006.
The US Federal Trade Commission has put conditions on the acquisition, ruling that Barr must sell or divest medications in four product markets in order to prevent consumers having to pay more for the products after the transaction.
The combined company will have a presence in over 30 countries, employ approximately 8,000 people and will have annual revenue of approximately $2.4 billion.
This transaction transforms the two companies into a single, global player with more than 120 generic and 25 proprietary products in the US, and more than 550 products in Western and Eastern Europe, said Bruce Downey, Barr’s CEO.
The global headquarters of the company will be located at the Barr Pharmaceuticals facility in New Jersey. European operations of the new company will continue to be centered in Zagreb, Croatia.