(By Balachander) Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) has agreed to sell its U.S. based animal health business to Bayer HealthCare LLC for $145 million as part of its move to focus on its core business assets.
The deal includes an upfront payment of $60 million plus a total of $85 million in milestone payments.
Germany-based Bayer, with 2011 sales of 17.2 billion euros, said the deal boosts its food animal franchise and introduce reproductive hormones to Bayer's product offerings.
The Israel-based generic drug maker's animal health portfolio features dermatology products sold under the DVM Pharmaceuticals brand, including such products as Malaseb, HyLyt, Relief and others.
Teva, with 2011 revenue of $18.3 billion, focused on CNS, oncology, pain, respiratory and women's health therapeutic areas as well as biologics.
The acquisition is expected to be completed in 2013.
U.S.-listed shares of Teva closed at $40.67 on Thursday.