Allergan PLC said today that it will sell its generic drug business for $40.5 billion in cash and stock to Teva Pharmaceutical Industries Ltd.

Allergan shares were up 7% to a market value of $129.7 billion in midday New York trading.

Allergan has a tax-friendly headquarters in Ireland and primarily operates from Parsippany, N.J., although a large portion of its business is based in Irvine.

Petach Tikva, Israel-based Teva employs nearly 400 people at its generic drug plant in the Irvine Spectrum.

It is not immediately known whether Teva plans to move any of the acquired operations to Irvine.