Jerusalem - Israeli Teva Pharmaceutical To Buy American Company Barr Labs for $7.5 Bil.

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Jerusalem - The Israeli pharmaceutical giant Teva is negotiating the purchase of America's Barr Pharmaceuticals for a sum of around US $7.5 billion. The deal, if carried out, would probably be a combined cash and share exchange deal. If successful, the purchase would become the largest ever in Israel.

Barr is traded on the New York Stock Exchange and has a current market value at $5.2 billion. According to estimates, Teva will pay a premium of 35-45 percent over the quoted stock price. Barr, like Teva, specializes in generic medications, but also makes 30 drugs developed in-house. The US company ended 2007 with a profit of $128 million, and its total income over that year was $2.5 billion.

Barr distributes approximately 120 generic drugs and 70 more of its products are awaiting FDA approval. The company also manufactures more than 1,000 branded generic drugs. Apart from the US, it's main market, the company is also active in Europe, mainly Germany, Croatia, Russia and Poland.

If Teva purchases Barr, it would further strengthen its standing as the world's foremost manufacturer of generic drugs.

Teva shares slightly strengthened when Us markets closed Wednesday, at $42.41 per share, a rise of 0.33%. The company declined to respond to reports of the coming purchase.

In January 2006, Teva completed the purchase of US company Ivax for $7.4 billion. In an official statement then, the company said that Ivax will work under the Teva name and operate in more than 60 countries, employing 26,000 workers.

The two companies generated more than $7 billion in profits in the 12 months ending in September 2005.