Acquisition of Anda
On August 3, 2016, Teva Pharmaceutical (TEVA) announced that it has entered into an agreement to acquire Anda, Allergan’s pharmaceutical distributor business, for about $500 million. Anda is the fourth-largest generic drug distributor in the United States. It distributes branded specialty and over-the-counter drugs. Anda sources drugs from about 350 manufacturers and distributes them across more than 60,000 pharmacies, hospitals, clinics, and physicians’ offices.
Anda has a strong order book involving about 85% of the pharmacies in the United States. It’s a leading distributor of new drug launches. Anda is considered a strategic addition to Teva Pharmaceutical’s business model. The acquisition is expected to boost Teva’s share price and positively impact the SPDR S&P World ex-US ETF (GWL). Teva makes up about 0.33% of GWL’s total portfolio holdings.
The above diagram shows Anda’s major customers. With improved patient access to Teva’s generic and specialty drugs after the acquisition, Anda will pose stronger competition to other generic pharmaceutical players such as Pfizer (PFE), Mylan (MYL), and Perrigo (PRGO).
Anda will get revenues from providing services to Teva Pharmaceutical. It’s expected to earn third-party revenues worth $1 billion in 2016. After the acquisition, Anda will operate as a stand-alone business, and Teva will report it separately.
Anda is also expected to benefit from the expanding biosimilar market in the United States. This is due to its extensive customer base and its infrastructure of warehouses and cool chambers.
In the next part of the series, we’ll analyze 2016 revenue projections for Copaxone.