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Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) announced that it has agreed to divest the UK and Ireland assets of Actavis Generics to Accord Healthcare, a subsidiary of Intas Pharmaceuticals Ltd, subject to a final approval from the European Commission (EC).

The deal has been settled with Accord Healthcare for an agreed value of £603 million.

Teva acquired Actavis Generics from Allergan plc (AGN - Free Report) in August. The divestment was part of an undertaking that Teva had made to the EC to get approval for its takeover of Actavis Generics. The transaction is expected to close within the next three months.

The divestment will include the sale of a portfolio of generic medicines, plus a manufacturing plant in Barnstaple, England. However, Teva has retained several Actavis products like non-overlapping generic products, specialty medicines, and OTC (over-the-counter) products.

Earlier this week, Teva completed the acquisition of Allergan’s U.S. generic distribution business, Anda, Inc., the fourth largest distributor of generic pharmaceuticals in the country.

Acquisitions have been an integral component of Teva’s expansion strategy. Over the past few years, the company has completed several major acquisitions. The company’s growth-by-acquisition strategy has enhanced its operational expertise and manufacturing capabilities substantially, provided support to its long-term investment in generics business, and aided expansion in emerging markets.

Zacks Rank & Key Picks

Teva currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in health care sector include Amphastar Pharmaceuticals, Inc. (AMPH - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphastar Pharmaceuticals witnessed an increase of 340% and 12.7% in its earnings estimates for 2016 and 2017, respectively, over the last 60 days. It has beaten earnings estimates in all of the last four quarters, bringing the average beat to 456.2%. The company’s stock price has rallied 45% year to date.

Anika Therapeutics has seen its earnings estimates for 2016 and 2017 rise 9.4% and 11.5%, respectively, over the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, with an average beat of 42.19%. Its share price has jumped 25.6% year to date.

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