Teva: Ratiopharm deal boosts business in Europe
Teva Pharmaceutical Industries Ltd. said Friday its acquisition of German drugmaker Ratiopharm will start adding to its profit three quarters after the deal closes, and puts Teva on its way to nearly tripling worldwide revenue over the next five years.
The Israeli company suggested it is done with major acquisitions for now. On Thursday, Teva said it would buy Ratiopharm for about $5 billion. CEO Shlomo Yanai said he thinks Teva can find at least $400 million in savings from the purchase over the next few years.
Teva is the largest generic drugmaker in the world and the market leader in North America.
The company said there is a lot of room for sales growth and on Friday, shares hit an all-time high of $63.97.
Teva reported about $11.09 billion in revenue in 2009. In January, the company said it plans to raise its revenue to $31 billion by 2015. Yanai said Thursday that about two-thirds of that growth will come from better results for its current businesses, and about a third will come from acquisitions.
The company is aiming for $9 billion in European revenue by 2015.