Bayer HealthCare to acquire Teva Animal Health

Bayer HealthCare has signed an agreement to acquire the US-Animal Health business of Teva Pharmaceutical Industries for up to US$145 million.

The purchase price includes an upfront payment of US$60 million plus a total of US$85 million in milestone payments, which are linked to the successful and timely achievement of manufacturing and sales targets.

The acquisition will reinforce the food animal franchise of Bayer HealthCare by providing a range of anti-infective solutions for livestock and introducing reproductive hormones to Bayer’s product offerings. This transaction will also strengthen Bayer HealthCare’s companion animal franchise by expanding its portfolio with dermatological, pet wellness and nutraceutical products.

The transaction, encompassing a manufacturing site in St Joseph, Missouri and around 300 employees, is expected to close in 2013, subject to antitrust clearance and satisfaction of other conditions.

New portfolio
The new portfolio will include a strong anti-infectives franchise and will enable Bayer to be present in all major therapeutic areas. The companion animal products features a full line of dermatology products sold under the DVM Pharmaceutical brand, including such products as Malaseb, HyLyt, Relief and others. Further companion animal products include a broad line of nutraceuticals encompassing joint and gastro-intestinal products including the Synovi brands. Food animal products acquired from Teva include a wide range of anti-infectives in addition to parasiticides, anti-inflammatory brands and reproductive hormones.