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15 Apr 2015

Mylan offers $30 billion bid for Perrigo

Highlights of expected deal:

  • Acquiring Company: Mylan
  • Campany to Acquire: Perrigo

Generics manufacturer Mylan has made an unsolicited, public offer to buy Ireland-based rival Perrigo for $205 per share. This would make the deal worth nearly $30 billion ($20 billion).

‘This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies,’ Mylan’s executive chairman Robert Coury said in a statement. Perrigo has confirmed that it received the proposal, and says its board will discuss it.

Both companies have focused on acquisitions recently. Just a few weeks ago, Mylan completed its purchase of Abbott’s branded speciality and generics business in developed markets outside the US – a deal worth $5.3 billion, which has allowed the company to relocate its tax headquarters from the US to the Netherlands. Perrigo recently closed a multi-billion dollar takeover of Omega Pharmaceuticals.

Analysts have speculated that Mylan’s bid for Perrigo could also be an attempt to fend off a hostile takeover from Israeli pharma giant Teva, which may also be seeking acquisitions to compensate for an upcoming shortfall in profits when the patent on its top-selling multiple sclerosis drug Copaxone (glatiramer) expires later this year.

Mylan’s preliminary proposal marks the latest in what has been a wild wave of consolidation within the pharma industry in recent months. It’s early in the fourth month of 2015, and already we’ve seen Pfizer Inc. buy Hospira Inc. for $17 billion, Bristol-Myers Squibb Co. nab Flexus Biosciences Inc. for up to $1.25 billion and the ongoing saga between Valeant Pharmaceuticals Inc., Salix Pharmaceuticals Ltd. and Endo Pharmaceuticals Ltd., which ended with Valeant buying Salix for about $15.8 billion.

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