Impax Laboratories Inc. announced on Tuesday that the company would be buying a portfolio of generic drugs from Teva Pharmaceutical Industries and Allergan PLC for $586 million.
The deal is being funed by cash and $400 million in debt. It is subject to customary closing conditions, Federal Trade Commission approval and the closing the Teva and Allergan deal.
The portfolio includes 15 currently sold generics, as well as several drugs in the pipeline, and the rights to generic Concerta. Concerta treats attention-deficit hyperactivity disorder and was part of a partnership between Impax and Teva.
According to Impax, the deal expands its portfolio of difficult-to-make and limited-competition products. The company has raised its profit guidance for the year because of the deal, and now expects at least 20% growth in profit, compared to at least 10% before.
Teva has been working to close its $40.5B acquisition of Allergan’s generic unit for the past year. The company is working to obtain regulatory approval still.
Disclaimer: We have no position in Impax Laboratories Inc. (NASDAQ: IPXL), Teva Pharmaceutical Industries Ltd (NYSE: TEVA) or Allergan (NYSE: ACT) and have not been compensated for this article.