Teva Pharmaceutical Looks to Acquire Montvale, N.J., Firm for $7.5 Billion

The Record - Hackensack, New Jersey

Jul. 18--MONTVALE -- Shares of Barr Pharmaceuticals Inc. soared 22 percent Thursday -- the most in nearly eight years -- after published reports said the generic drug maker might be acquired for $7.5 billion by Israel-based Teva Pharmaceutical Industries Ltd., the world's largest maker of generics.

Neither Barr nor Teva would comment on the reports. Wall Street analysts said the deal makes sense because it would increase Teva's access to both the oral contraceptive market, where Barr is a major player, and Eastern European markets.

A Barr acquisition would double Teva's "fast-growing Eastern European business from only 5 percent of revenue at $440 million up to $880 million," Corey Davis, an analyst with Natixis Bleichroeder, wrote in a letter to clients.

Davis raised his target for Barr stock from $49 to $60 a share. It closed Thursday at $57.17, up $10.35.

In 2006, Barr bought Eastern Europe's largest drug company, Croatia-based Pliva, for $2.5 billion.

Barr says it is the largest manufacturer of birth control pills in the U.S. One of its best-known products is Plan B, the so-called morning-after pill, which Barr says lowers the risk of conception by 89 percent if taken within 72 hours of unprotected intercourse. Plan B got a big boost in August 2006 when the Food and Drug Administration ruled that it could be sold over the counter to customers over age 18. All the national pharmacy chains now stock it.

Barr recently launched a generic version of Bayer's Yasmin and Yaz contraceptives. That launch came earlier than expected, Davis said, and will boost Barr's earnings.

Davis expects Barr to soon begin producing generic versions of other drugs with multi-million-dollar annual sales. Even without a Teva takeover, Davis said, "Barr remains our top generic pick."

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