Teva Looking for a Way Out of Rimsa Generics Deal, Says Lawsuit

Sep 15, 2016

Bloomberg

Former owners of Representaciones e Investigaciones Medicas, known as Rimsa, say Teva is looking for ways to back out of the $2.3 billion deal.

Teva agreed to buy the Mexican generics business last year, in order to expand in emerging markets. Now, former Rimsa owners are suing Teva, alleging it made false accusations of fraud in order to void the purchase.

As quoted by Bloomberg: "Shortly after the acquisition, Teva concluded that it had substantially overpaid for the Rimsa companies," the former owners said. It “now wants its money back because otherwise Teva knows that its management will be held accountable by its shareholders.”

But Teva says Rimsa failed to disclose the differences between manufacturing processes and descriptions in product registrations filed with regulators.

“Teva intends to respond strongly to the lawsuit and will be seeking a variety of remedies for fraud and breach of contract,” the company said.