Generic Drugs Don’t Come Cheap: Teva Buys Barr For $7.46 Billion
Teva's $7.46 billion acquisition of Barr will create an unrivaled generics powerhouse and position the company as a leader in the industry's next untapped frontier: biosimilars
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In contrast to Big Pharma’s doldrums, generics manufacturer Teva had a banner year in 2008 – and expects a strong follow up in 2009.
The biggest pharmaceutical companies are least affected by the current credit crisis due to their strong balance sheets and hefty piles of cash, yet even they are finding debt is more expensive and harder to obtain. Big biotechs also have billions of dollars in cash and marketable securities. Smaller, development stage companies, however, are more fragile because their existence depends on their ability to raise money to fund their R&D.Specialty pharma falls in between big pharma and biotech: the group is vulnerable, but not as much as biotech. The lack of access to capital makes doing deals tougher and more expensive.
Several generic firms are calling the pending merger of Teva and Barr a positive development for the rest of the industry, saying that it will leave behind ample market share for smaller companies