In its largest deal to date, Teva Pharmaceutical Industries has moved to buy Allergan’s generics business for US$40.5 B in cash and stock. The purchase will provide Teva with increased scale and pricing power in the generics market and will reinforce its first-to-file ANDA pipeline, particularly with regard to complex generics. The deal brings an end to Teva’s 3-month hostile pursuit of Mylan and marks a new chapter in the evolution of Allergan, positioning the company for further acquisitions in the branded pharmaceutical space thanks to a significantly strengthened balance sheet.