Merck Serono Sells Théramex to Teva for EUR 265 Million

Acquisition Will Provide Teva With a Strong Platform to Expand its Global Women's Health Business

GENEVA, October 28, 2010 - Merck Serono, a division of Merck KGaA, Darmstadt, Germany,
announced today that it will sell Théramex, its Monaco-based pharmaceutical
company specialized in women's health and gynecology, to Teva. Merck KGaA and
Teva have signed an agreement whereby Teva will acquire all Théramex
operations including 100% of the shares of Théramex S.A.M. of Monaco and
Théramex S.p.A. of Italy for a consideration of EUR 265 million. In addition,
Merck Serono will be eligible to receive certain performance-based milestone
payments. Teva will have the distribution rights of Théramex products in
certain countries including Spain and Brazil; Merck Serono will continue
distributing Théramex products in certain other countries.

The divested Théramex business represents about EUR 100
million of sales in 2009, including sales in the countries where distribution
rights will be acquired by Teva. The agreement is subject to regulatory
approval. Closing of the transaction is expected towards the end of this year
or early 2011.

"Theramex has built a solid reputation in France and Italy as
a company dedicated to women's health and gynecology. As Théramex is entering
the contraceptive market, we firmly believe that a combination with Teva will
not only contribute to growing its position in the gynecological market but
also to building a major player in the area of contraceptives. " said Elmar
Schnee, Member of the Executive Board of Merck KGaA and President of the
Merck Serono division, adding: "Merck Serono will pursue its strategy focused
on delivering innovations to patients in its core therapeutic areas:
neurodegenerative diseases, oncology, fertility, rheumatology and
endocrinology; as well as bringing cardio-metabolic care products in emerging
markets where access to general medicines remains a high unmet medical need."

Commenting on today's transaction, Shlomo Yanai, Teva's
President and Chief Executive Officer, said: "This is an important
acquisition for Teva's women's health franchise. Théramex's diversified
product portfolio, its seasoned sales force and promising pipeline will be
combined with the strong R&D capabilities and product portfolio of our U.S.
women's health business. Together the global team will accelerate the
expansion of our women's health franchise into key growth markets in Europe
and around the world and provide an excellent springboard for future sales.
We very much look forward to working together with Théramex's experienced
management team and having its work force join the Teva family."

Since joining the Merck Group in 1999, Théramex has developed
a strong brand image and a reputation for quality among women's health
specialists. Today Théramex has more than 300 employees in France and Italy
and offers a large portfolio of products in 50 countries, in the areas of
gynecology, osteoporosis, peri-menopause, menopause and contraceptives,
including, Orocal(R), Colpotrophine(R), Lutenyl(R), Monazol(R), Estreva(R),
Antadys(R) and Leeloo Gé(R). Théramex is also developing, in partnership with
Merck & Co., nomegestrol acetate (2.5mg)/17beta-estradiol (1.5mg), a combined
oral contraceptive containing a unique combination of a natural estrogen
identical to the estrogen produced by the woman's own body and a selective
progestin, currently in registration in Europe.

J.P. Morgan is acting as exclusive financial advisor to Merck KGaA.

About Teva

Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) is a leading
global pharmaceutical company, committed to increasing access to high-quality
healthcare by developing, producing and marketing affordable generic drugs as
well as innovative and specialty pharmaceuticals and active pharmaceutical
ingredients. Headquartered in Israel, Teva is the world's largest generic
drug maker, with a global product portfolio of more than 1,250 molecules and
a direct presence in approximately 60 countries. Teva's branded businesses
focus on neurological, respiratory and women's health therapeutic areas as
well as biologics. Teva's leading innovative product, Copaxone(R), is the
number one prescribed treatment for multiple sclerosis. Teva employs more
than 40,000 people around the world and reached $13.9 billion in net sales in
2009.

About Merck Serono

Merck Serono is the division for innovative prescription
pharmaceuticals of Merck KGaA, Darmstadt, Germany, a global pharmaceutical
and chemical company. Headquartered in Geneva, Switzerland, Merck Serono
discovers, develops, manufactures and markets innovative small molecules and
biopharmaceuticals to help patients with unmet medical needs. In the United
States and Canada, EMD Serono operates through separately incorporated
affiliates.

Merck Serono has leading brands serving patients with cancer (Erbitux(R),
cetuximab), multiple sclerosis (Rebif(R), interferon beta-1a), infertility
(Gonal-f(R), follitropin alfa), endocrine and metabolic disorders (Saizen(R)
and Serostim(R), somatropin), (Kuvan(R), sapropterin dihydrochloride) as well
as cardiometabolic diseases (Glucophage(R), metformin), (Concor(R),
bisoprolol), (Euthyrox(R), levothyroxine). Not all products are available in
all markets.

With an annual R&D expenditure of more than EUR 1 billion,
Merck Serono is committed to growing its business in specialist-focused
therapeutic areas including neurodegenerative diseases, oncology, fertility
and endocrinology, as well as new areas potentially arising out of research
and development in autoimmune and inflammatory diseases.

About Merck

Merck is a global pharmaceutical and chemical company with
total revenues of EUR 7.7 billion in 2009, a history that began in 1668, and
a future shaped by approximately 40,000 (including Merck Millipore) employees
in 64 countries. Its success is characterized by innovations from
entrepreneurial employees. Merck's operating activities come under the
umbrella of Merck KGaA, in which the Merck family holds an approximately 70%
interest and free shareholders own the remaining approximately 30%. In 1917
the U.S. subsidiary Merck & Co. was expropriated and has been an independent
company ever since.

For more information, please visit www.merckserono.com or
www.merck.de

Merck Serono S.A. - Geneva, 9 Chemin des Mines, 1202 Genève, Suisse, Media relations, Tel: +41-22-414-36-00