Perrigo was none too fond of Mylan’s most recent offer when it made it back in April. Yet it looks like that’s the one Mylan’s sticking with–at least for now.
In a proxy filing from the generics giant, Mylan laid out the terms of its offer–$75 per share in cash and 2.3 Mylan shares for each Perrigo share. And that makes it seem “less likely Mylan will change” its proposal, Bernstein analyst Ronny Gal wrote in a note to investors on Monday.
Of course, those are the same terms Mylan laid out two months ago–terms that Perrigo said “significantly undervalued” its business. And since then, the Irish drugmaker’s CEO, Joseph Papa, has said he’s not opposed to a Mylan buyout at the right price–but that when it comes to finding one, the two companies are still “far apart.”
Mylan, for its part, blames that on Perrigo. “In recent weeks, Mylan has repeatedly offered to have constructive discussions with Perrigo regarding its current offer for Perrigo, but Perrigo has refused to engage in discussions,” it wrote in the new filing. And while Mylan says it still thinks it’s possible to work something out directly with Perrigo, it plans to push forward with the transaction regardless.
One reason: Sealing a Perrigo deal will thwart Mylan’s own unwanted suitor, Teva. The Israeli drugmaker has said its $40-billion-plus offer–one Mylan wants nothing to do with–is contingent on its target not buying Perrigo–or anyone else, for that matter.
So Mylan is working to do exactly that, a pursuit that’s included an investor roadshow that most recently stopped on its predator’s home turf. Last week, CFO John Sheehan met with Perrigo shareholders in Israel to tout the benefits of a tie-up; he also promised to list Mylan on the Tel Aviv stock exchange and keep open at least one Israeli manufacturing facility, Gal noted.
By Carly Helfand
