Teva Pharmaceuticals (TEVA) made a corporate presentation on Wednesday, highlighting the benefits of the Allergan (AGN) deal. TEVA had agreed to acquired Allergan’s generic business in a transaction valued at more than $40 billion. The two companies recently extended the outside date of their deal to October 26 from July 26 (this is the date that the closing must occur). Other amendments include increasing the base working capital adjustment by at least $650M (up to $800M under certain circumstances), adding Actonel (authorized generic) and Carafate (authorized generic) to the list of excluded products and a reduction in the cash consideration to be paid by $221M.

TEVA CEO Erez Vigodman noted the benefits of the transactions include $1.4B in cost synergies and tax savings by the end of 2019. Other pluses by the end of 2019 are: accretion in non-GAAP EPS of 19%, more than $25B in cumulative free cash flow and a return on invested capital of 9.3%. TEVA’s revenue is expected to increase from $19.7 billion to $26.7 billion-$27.8 billion by 2019. EBITDA is expected to grow from $6.6 billion to $10.7 billion-$11.5 billion. Based on the midpoint of the 2019 sales forecast, TEVA currently trades at just 2x sales, which is well below the multiple for major pharmaceutical companies.