Sector News

Perrigo CEO calls on his Israeli investors to block Mylan bid

October 26, 2015
Life sciences

Perrigo has railed repeatedly against Mylan’s hostile takeover bid and introduced massive cost-cuts and streamlining efforts to try to keep its shareholders loyal. Its next step in fending off its unwanted suitor? Heading to Israel.

The Dublin drugmaker’s CEO, Joseph Papa, and CFO Judy Brown are on their way to the country to rally investors there against Mylan’s bid, Bloomberg reports. Israel’s largest institutional investors together hold more than 10% of Perrigo, the news service notes.

Israel, where Perrigo’s shares are listed, has become a battleground over the course of the takeover tussle. Last month, Perrigo sued Mylan in Israeli Court alleging that its pursuer failed to publish a lawful tender offer in Israel on the required date and requesting the court stop Mylan in its tracks. More recently, Mylan–whose CFO, John Sheehan, traveled to Israel this summer to meet with the head of the Tel Aviv Stock Exchange–got a go-ahead to list its shares on the exchange as part of its takeover effort.

One of Perrigo’s influential Israeli investors is already in its camp. In September, local businessman and former company vice chairman Mori Arkin urged his fellow investors to hold off on taking up Mylan’s tender offer, arguing that if they wait a few months, they can “have the same price without the hassle and risk involved in a Mylan deal.”

Meanwhile, Perrigo is working on plenty of initiatives to combat the tie-up outside of Israel, too. Last week, it announced it would whittle its global workforce by 6%–resulting in 800 job cuts; pare down its organizational structure; initiate a sales process for its vitamins, minerals and supplements business; and kick off a $2 billion share buyback program, all moves it hopes will keep shareholders sticking around.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

May 21, 2022

As monkeypox cases emerge in US and Europe, Bavarian Nordic inks vaccine order

Life sciences

A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.

May 21, 2022

Moderna chairman Afeyan defends hiring practices after CFO debacle: report

Life sciences

Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.

May 21, 2022

Merck to pay up to $1.4B in cancer deal with Kelun, but details are scarce

Life sciences

Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”