Teva’s Just the Start as More Generic Drugmakers Poised to Merge

The $40.5 billion merger that’s transforming the generics industry is the biggest yet in a series of deals by drugmakers adjusting to a market that has fewer buyers.

Teva Pharmaceutical Industries Ltd.’s deal for Allergan Plc’s generic business is partly a response to consolidation taking place among distributors, which purchase the lower-priced copycat drugs for eventual sale to patients. To gain negotiating leverage with those buyers, more generic makers may have to combine.