Perrigo rejects Mylan as Teva enters the fray
Παρασκευή 24 Απρ 2015
Mylan has become the target of a US$40 billion hostile takeover proposal from Teva on the same day that Perrigo's board rejected a US$29 billion takeover proposal from Mylan.
Israeli generics giant Teva maintained that its proposal was a "more attractive alternative for Mylan stockholders than Mylan's proposed acquisition of Perrigo".

Meanwhile, Joseph Papa – Perrigo's chairman, president and chief executive officer – said his company's board had "unanimously" rejected Mylan's proposal, which "substantially undervalues Perrigo and its growth prospects".

Papa maintained that Mylan's proposal "did not take into account the full benefits" of the acquisition of Belgian OTC specialist Omega Pharma that was completed on 30 March 2015. "With the acquisition of Omega Pharma, we are a top five global OTC company with a diversified portfolio, a market leading position in key franchises, and a strong and established global distribution platform," pointed out Papa.

He added that Perrigo was targeting an organic Compound Annual Growth Rate (CAGR) for net sales of 5%-10% over the next three years.

Generics company Mylan announced on 8 April 2015 that it wanted to buy Perrigo in a cash and shares deal worth around US$29 billion (click here to read the News story).

The move came just days after Ireland-based Perrigo had completed the acquisition of Omega Pharma for €3.8 billion (US$4.2 billion) including the assumption of €1.3 billion in debt.

Under the terms of Mylan's non-binding proposal, Perrigo's shareholders would receive US$205 in a combination of cash and Mylan stock for each share.

Robert Coury, Mylan's executive chairman, said the proposal was the "culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination".

Mylan said the proposed Perrigo transaction would produce a "company with critical mass in specialty brands, generics, OTC and nutritional products". The combined company would have pro forma 2014 sales of approximately US$15.3 billion and would have a "powerful commercial platform with reach across all customer channels".

Teva's bid for Mylan

Teva announced on 21 April 2015 that it wanted to acquire Netherlands-based Mylan for US$82.00 per share in a cash and shares deal valuing Mylan at around US$40 billion.

Teva and Mylan are two of the world's leading generics companies. Teva has a significant presence in the OTC market through its PGT Healthcare joint venture with Procter & Gamble.

According to Teva, the proposed combination of Teva and Mylan would create a leading company in the pharmaceutical industry that was "well-positioned to transform the global generics space".

Commenting on media speculation ahead of Teva's announcement, Coury said Mylan was "fully committed to its stand-alone strategy, including its proposal to acquire Perrigo".

"We have studied the potential combination of Mylan and Teva for some time, and we believe it is clear that such a combination is without sound industrial logic or cultural fit," stated Coury. "Furthermore, there would be significant overlap in the companies' businesses, and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances."

Coury added that Mylan's board would "carefully consider" any proposal from Teva.

Πηγή:  www.otctoolbox.com

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