Settling a Post-Buyout Hangover, Allergan Gives Teva a $700M Remedy
Teva and Allergan have put aside their differences—and the result is an influx of cash that Teva badly needs, according to a report in FiercePharma.
Wednesday, the former deal partners inked an agreement to settle a dispute over the amount of working capital that changed hands when Teva took over Allergan's generics unit last year. Allergan will fork over $700 million, and Teva says it’ll use that money to repay some of the debt it incurred with that disastrous $40.5 billion buy.
Back in November, the embattled Israeli drugmaker noted that the final cash consideration from its $40.5 billion buyout of Allergan’s generics unit was in need of tweaking. As a starting point before heading into arbitration, Teva suggested Allergan hand over $1.4 billion. Meanwhile, the Israeli company cautioned investors in a financial filing that the amount it eventually received “could be significantly lower than the amount submitted.”
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