Teva agrees to buy Allergan unit for $40.5 billion, creating generics giant

Teva agrees to buy Allergen Generics for $40.5 billion — (Image credit: Fred Dufour/AFP/Getty Images)

On Monday, Teva, the world's top generic drug company, agreed to buy its No. 3 rival, Allergan Generics, for $40.5 billion in cash and stock. Teva, based in Israel, said both companies' boards have unanimously approved the deal for U.S.-based Allergan's generic drug unit. The merger is expected to close in the first quarter of 2016. In announcing the Allergan deal, Teva said that it has dropped its $40 billion bid for Mylan, its No. 4 global competitor.

If completed, the acquisition will not just increase Teva's share of the generics market — already 12 percent, according to The Wall Street Journal; it will also give the Israeli drugmaker greater annual revenue than many better-known name-brand pharmaceutical companies.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.