"This acquisition fits nicely with our strategic goals," Joerg Reinhardt, chief executive officer of Bayer HealthCare, said in a statement. "It allows us to strengthen and broaden our range of animal care solutions in the U.S. market."
Unlike human products, drugs for dogs, cats, horses, and other animals produced by pharmaceutical companies are rarely constrained on price by insurance companies or governments. People tend to splurge on their pets, and even on livestock, which generates revenue for drugmakers. That is part of why Pfizer Inc. plans to offer up to 20 percent of its animal-health division as separate stock under the company name Zoetis Inc.
Pfizer had $1 billion in revenue from animal health in the third quarter of 2012, according to its filing with the Securities and Exchange Commission.
Conversely, Teva's new strategic goals are to pare down its wide range of facilities, products, and areas of focus.
Jeremy Levin took over as Teva CEO on May 9, after having been named to the position Jan. 1, 2012, and the company has been trying to refocus. It recently said it would cease planning a $300 million Northeast Philadelphia facility. Teva has its Americas headquarters in Montgomery County.
When the animal-health deal was announced in September, Teva said it would get $60 million up front and then could get up to $85 million more if the animal products met manufacturing and sales targets.
"We are committed to making disciplined decisions that focus on our core businesses and strategically position the company as setting a new standard in both generic and branded medicines," Itzhak Krinsky, Teva executive vice president and head of business development, said in a statement in September when the deal was announced. "As part of our overall strategy to refine our global footprint, we will continue to leverage our product portfolio and R&D efforts while selling or out-licensing assets that no longer fit within the scope of our business."
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