August 3, 2016 / 2:10 PM / 4 years ago

Allergan to sell Anda drug distribution business to Teva

Allergan ticker info and symbol are displayed on a screen on the floor of the New York Stock Exchange (NYSE) April 6, 2016. REUTERS/Brendan McDermid

(Reuters) - Allergan Plc (AGN.N) said it would sell its Anda Inc distribution business to Israel’s Teva Pharmaceutical Industries Ltd (TEVA.TA) for $500 million, a day after Teva completed its $40.5 billion acquisition of the Dublin-based company’s generics business.

Anda distributes generic, brand, specialty and over-the-counter pharmaceutical products from more than 300 manufacturers to pharmacies, nursing homes, hospitals, clinics and physician offices across the United States.

The deal is expected to close in the second half of 2016.

Anda, currently the fourth-largest wholesale distributor of generic pharmaceuticals in the United States, is expected to bring in net revenue of about $375 million in the second quarter, excluding sales of Allergan’s branded products, Allergan said on Wednesday.

For 2016, Anda is expected to generate about $1.5 billion in third-party net revenue and about 15 cents in earnings per share, the company added.

Allergan’s divestiture of its generics business, which was announced in July 2015, solidifies Teva’s (TEVA.N) position as the world’s No. 1 maker of generics while freeing Allergan to focus on branded drugs.

Reporting by Natalie Grover in Bengaluru; Editing by Maju Samuel

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