The company's 2015 net income amounted to USD 19.7 billion. By acquiring Actavis Generics, Teva is expanding its international commercial potential and globalizing the sale and the R&D network to a considerable extent.
Acquisitions increasingly more frequent
This is just one of the many mergers between pharmaceutical giants in the past few years, and, as the recent study by Ernst & Young (E&Y) has shown
, more acquisitions in this sector can be expected.
– We are going to witness a high level of investments and sales in the pharmaceutical industry in the years to follow – said Gerd Stuerz, analyst at E&Y.
This April, Pfizer and Allergan gave up on the USD 160 billion worth merger, which would have created the new world leader in the pharmaceutical industry, overtaking the Swiss giant Novartis as the top company in its sector. The merger failed due to the efforts taken by the American authorities in preventing the companies to avoid paying taxes by merging with each other.
This will, however, probably not signal the end of the wave of important mergers in the sector, they say in E&Y.
– Companies will sell out entire departments or buy new ones in order to strengthen their positions – said expert Siegfried Bialojan.
Faced with strong competition, many companies find the growth assisted by external aid to be crucial.