Impax To Pay $586 Million On Generic Drug Products From Teva And Allergan

Impax Laboratories Inc. announced on Tuesday an agreement to buy a portfolio of generic drugs from Teva Pharmaceutical Industries Ltd. and affiliates of Allergan PLC for a total of $586 million. Impax said the deal, which includes currently marketed and pipeline products, will immediately add to earnings. As a result of the deal, Impax now expects 2016 adjusted earnings per share to grow 20% from 2015, compared with a previous forecast of 10% growth. Revenue is expected to increase 15%. The 2016 FactSet EPS consensus of $1.71 represents 18% growth from 2015, while the revenue consensus of $984.1 million implies 14% growth. The stock, which was still inactive in premarket trade, has tumbled 25% year to date, while the S&P 500 has gained 1.9%.