Teva acquires Allergan in $40bn deal

Drug maker Teva Pharmaceutical Industries has reached a deal with Allergan PLC to acquire Allergan Generics for $40.5bn (£26.1bn).

The Israel-based group, the world’s biggest seller of generic medicines with a market value of approximately $60bn, said the deal will strengthen its position in the industry.

Earlier this year, Teva had submitted a bid to purchase generic-drug firm Mylan NV but has since withdrawn its offer following the agreement with Allergan, sending Mylan shares tumbling 12.8% in pre-market trading in New York.

Last week, Anthem and Cigna, and Aetna and Humana, four of the largest healthcare companies in the world, merged into two firms in deals worth a combined $82bn.