Teva Pharmaceuticals (Nasdaq:TEVA) today took the market by surprise, announcing that it has dropped plans to acquire the injectible drugs unit of Australian company F.H. Faulding & Co. (Australia:FHF).
The generic drugmaker company was disappointed by due diligence negotiations, it said.
The deal was part of a transaction involving several firms, in which Mayne Nickless (Australia:MAY) acquired F.H. Faulding & Co. , while Teva would buy the injectible drugs business. Another company, Alpharma (NYSE:ALO), was slated to acquire Faulding's generic oral medicines unit.
"We were quite disappointed with the findings of our due diligence, which together with other unresolved issues determined that the acquisition would not be justified under our usual stringent standards, and therefore decided not to pursue our option," stated Teva president and chief executive Eli Hurvitz.
Teva stock slid 2.7% in Tel Aviv today while starting Nasdaq with a 1.2% dip.
The products of the Faulding injectibles unit, mainly antibiotics, analgesics and cancer treatments, are sold to hospitals throughout Australia and to 70 other countries.