Sector News

Mylan Says It Is Opposed To Possible Teva Pharmaceuticals Merger

April 20, 2015
Life sciences
Generic drugmaker Mylan wants to put speculation of a possible merger with Teva Pharmaceuticals to rest. A potential deal, the company said, is “without sound industrial logic” and would have a hard time winning anti-trust clearances.
 
Mylan’s comments on Friday responded to reports from both Bloomberg and the Wall Street Journal that indicated Teva Pharmaceutical is considering a bid for the company. Speculation of a Teva bid pushed Mylan shares higher by over 4% on Friday, closing trading at a $32 billion market capitalization. Teva shares rose more than 2%.
 
“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,” Mylan executive chairman Robert Coury said in a statement.
 
“Further, 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,” he added.
 
The company said on Friday it remains committed to a stand-alone business strategy, which includes a $28.9 billion unsolicited offer for competitor Perrigo , announced on April 8. “Today’s speculation has no impact whatsoever on this strategy,” said Koury, who added that the if a bid is made, the company will consider it in and what is in the best interest of its stakeholders,
 
Earlier in April, Mylan said it would pay $205 a share in cash and stock for Perrigo, without specifying an exact formula for its unsolicited takeover offer. With Perrigo in hand, Mylan said it would reach a critical mass in specialty brands, generics, over-the-counter (OTC) and nutritional products.
 
Mylan’s offer for Perrigo and signs Teva may enter the M&A fray, come at a time of heavy dealmaking in the fast-consolidating pharmaceutical sector.
 
In 2015 alone, Pfizer, Valeant Pharmaceuticals, Shire  and AbbVie have all cut multi-billion dollar takeover deals, leading to $126 billion in M&A in the first quarter, according to data provider Dealogic.
 
That comes on the heels of a banner year for healthcare M&A, even as a Department of Treasury freeze on so-called inversion transactions cancelled some of the year’s biggest merger efforts.
 
By Antoine Gara
 
Source: Forbes

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

November 27, 2020

AbbVie lifts insider Jeffrey Stewart to commercial chief as company veteran Carlos Alban retires

Life sciences

AbbVie will soon have a new chief commercial officer, who’ll assume the heavy responsibility of navigating the Illinois pharma’s marketing transition from megablockbuster Humira.

November 27, 2020

Belgium biotech argenx nabs Bayer speedy review voucher for a cool $98M

Life sciences

The biotech, which has a series of deals across Big Pharma, will use the voucher, which can speed up the regulatory process for a new drug, for its late-stage drug efgartigimod—but not in the indication you might think.

November 27, 2020

Galapagos sells off Fidelta as CRO activities ‘no longer fit with its strategy’

Life sciences

Galapagos is selling off its contract research organization Fidelta for $37 million to Polish life science company Selvita. Fidelta focuses on inflammation, fibrosis and anti-infectives, with 181 employees at the helm.

Send this to a friend