Mylan raises bid for Perrigo Co to $34.10 bn

29 Apr 2015


Generic and specialty pharmaceuticals company Mylan NV today raised its unsolicited takeover offer for Perrigo Co Plc to $34.10 billion; just a few days after its Dublin-based target had rejected a revised bid.

Mylan is now offering to pay $75 in cash and 2.3 of its shares for each Perrigo share, as against its earlier sweetened offer of $60 in cash and 2.2 Mylan shares.

The total offer price has now been raised to about $242 per share compared to the earlier offer of $222 per Perrigo share.

As a result of the increased offer, Mylan shareholders will own approximately 60.7 per cent of the merged company, while the remaining 39.3 per cent will be held by Perrigo shareholders.

On 8 April Mylan made an unsolicited offer to buy Perrigo for about $29 billion in cash and stock, a move designed to expand its generic drug portfolio and also stave off a takeover bid by Teva. (See: Generic drug maker Mylan to buy Perrigo Co for $29 bn)

Perrigo did not respond until 21 April, but rejected the offer just two hours after Israeli drug maker Teva Pharmaceutical Industries Ltd had tabled kits unsolicited bid to buy Mylan for $40 billion.

Teva's offer was on condition that Mylan drop its bid for Perrigo.

On 24 April, Mylan, which had rejected Teva's takeover offer, raised its bid for Perrigo to $33 billion and threatened to take the offer directly to Perrigo shareholders.

Perrigo immediately rejected the sweetened bid, saying that the latest offer was lower to its previously rejected proposal. (See: Perrigo Co rejects Mylan's $33-bn sweetened bid)

Earlier based in Michigan, Perrigo moved its headquarters to Ireland through an inversion deal in 2013. It acquired Dublin-based Elan Corp for $8.6 billion, a move that is expected to bring in savings of an estimated $150 million a year in taxes.

Founded in 1887, Perrigo is the world's largest manufacturer of over-the-counter (OTC) drugs. It also makes general prescription drugs, infant formulas, nutritional products, dietary supplements and other products.

The company is also a leading provider of branded OTC products, generic extended topical prescription products, infant formulas, nutritional products, dietary supplements and also receives royalties from its multiple sclerosis drug Tysabri.

Nearly half of Perrigo's $4.06-billion sales last year were generated from its consumer health-care division, including store-brand over-the-counter medicine like Sudafed and NyQuil.

The company's primary markets are spread over the US, Israel, Mexico, the UK, India, China and Australia.

Mylan is one of the world's leading generics and specialty pharmaceutical companies and sells its products in approximately 150 countries.

It has a portfolio of more than 1,400 generic pharmaceuticals and several branded medications. It also offers a wide range of anti-retroviral therapies, and is one of the largest active pharmaceutical ingredient manufacturers.

Last year Mylan acquired Abbott Laboratories for $5.3 billion, a move that allowed it to move its corporate headquarters to the Netherlands.

The New York Exchange-listed company has a market cap of $33.5 billion and posted net profit of $929 million in 2014 on revenues of $7.6 billion.

The proposed merger would create a company with annual sales of about $15 billion.

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