Generic Drug Firms Deal A New Hand In Global Market (Investor's Business Daily)

Friday August 1, 5:46 pm ET Teva Pharmaceutical's planned buyout of Barr Pharmaceuticals for cash and stock was a headline-grabber. When the world's biggest generic drug maker buys the fourth largest, that looks like a seismic shift. But it's more a natural progression than an upheaval of the firmament, experts say. The generic drug business is destined for more consolidation. Teva's (NasdaqGS:TEVA - News) offer, announced July 18, comes to about $9 billion, including debt. That raises the mark for industry consolidation, says Alan Sheppard, global marketing director for generics with IMS Health (NYSE:RX - News ), a marketing and analytics firm. It certainly raised the mark for Barr (NYSE:BRL - News ) shareholders. Its stock, which traded at 46.82 two days before the deal came public, rose 38% over a three-day period and... [read full story]