Here’s Why These Five Stocks Are In the Spotlight

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M&A in the Generics Business

According to ReutersDr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) has agreed to purchase eight generic drugs from Allergan plc Ordinary Shares (NYSE:AGN) and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). The purchase will cost Dr Reddy $350 million in cash and will help improve the company’s growth in the United States. Teva is selling the generics to win approval from U.S. regulators for its acquisition of Allergan’s generic business, which, if completed, is expected to yield substantial synergies. Although Dr Reddy hasn’t released the exact names of the generic medicines, the company did say that the branded versions of the generics brought in U.S. revenue of around $3.5 billion for the most recent twelve months ending in April 2016. Of the 766 elite funds we track, the smart money found Allergan plc Ordinary Shares (NYSE:AGN) the most attractive with 170 funds owning shares at the end of March. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) was next with 70 funds long the stock, and Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) was last with eight funds holding shares at the end of the first quarter.

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