Teva Europe Portfolio Said to Draw Interest From Mylan, Novartis

  • Teva’s portfolio could fetch $1.5 billion to $2 billion
  • Private equity firms also weighing offers for the business

Teva Pharmaceutical Industries Ltd.’s portfolio of drugs in the U.K., Ireland and Iceland is attracting bidders including Mylan NV and Novartis AG, people familiar with the matter said.

Private equity firms including Apollo Global Management LLC and Cinven Ltd. are also weighing bids for the business, which could fetch $1.5 billion to $2 billion, the people said, asking not to be named because the deliberations are private. The European Commission would prefer that the assets go to a strategic buyer with experience in the European generics market, the people said.

Teva is working with financial adviser Greenhill & Co. on the disposal, which is still at a preliminary stage, the people said.

Spokesmen for Teva, Greenhill, Novartis, Apollo, Cinven, Mylan and the European Commission declined to comment.

Teva is selling assets as it works to get regulatory approval for its $40.5 billion acquisition of Allergan Plc’s generics business. In March, Teva won conditional European Union approval for the takeover after allaying regulators’ concerns with concessions, including the sale of “the great majority” of the subsidiary’s U.K. and Irish business. The sale of a portfolio of drugs in Europe would join other disposals that Teva is considering in countries such as the U.S. and the Middle East in order to win antitrust approval.

The European Commission said at the time it “had concerns that the merged entity would have faced insufficient competition from the remaining players for a number of generic pharmaceuticals.”

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