Merger creates generic drugs giant

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Industries announced yesterday that it has entered into an agreement to acquire Miami-based

for $7.4 billion, creating the world's largest generic drug company.

The transaction, which would see IVAX become a subsidiary of TEVA, will be submitted for approval by the shareholders of both IVAX and TEVA and is subject to antitrust notification and clearance statutes in the US and Europe.

Dr. Phillip Frost, IVAX’ Chairman and CEO, and other management shareholders of IVAX, holding an aggregate of approximately 19% of the outstanding shares of common stock of IVAX, have agreed to vote their shares in favour of the transaction.

Based on the existing operations of TEVA and IVAX and assuming completion of the transaction, TEVA will employ approximately 25,000 people in over 50 countries, generating sales of over $7 billion.

“The combination of our two complementary businesses will allow TEVA to expand and strengthen our global generic and branded businesses with additional products, a deeper pipeline, and a wider presence in new therapeutic areas and growth markets,” commented Israel Makov, TEVA’s President and CEO.

The transaction is designed to qualify as a tax-free reorganisation under

tax laws and is expected to close in late 2005 or early 2006.