Barr Pharma Deal Should Close

Barr Pharmaceuticals, Inc. (BRL) is a global specialty pharmaceutical company engaged in the development, manufacture and marketing of branded and generic drugs. On July 18, 2008, Barr announced that it has entered into an agreement with Teva Pharmaceuticals (TEVA - Analyst Report) whereby the latter will acquire Barr for $7.46 billion plus the assumption of net debt of approximately $1.5 billion.

We had issued a Sell rating on Barr after the company posted disappointing first-quarter results and slashed its full-year outlook. However, we moved back to a Hold rating following the Teva takeover announcement. This offer has come at the right time for Barr -- the deal should close later this year. We maintain a Hold rating with a $65 price target.

Barr markets and sells generic pharmaceutical products in the U.S., Europe and certain other countries in the rest of the world. Its generic product portfolio includes solid oral dosage forms, injectables, and cream/ointment products. Meanwhile, the branded product portfolio is mainly focused in the area of female healthcare.

Arpita Dutt contributed to this report.

Read the full analyst report on BRL

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