Sector News

Perrigo CEO: Think Mylan’s buyout will come easily? Think again

August 7, 2015
Life sciences
Perrigo has stayed quiet since Teva dropped its hostile pursuit of Mylan, choosing instead to snap up Allergan’s generics business for $40.5 billion. Mylan’s shares plummeted on that news. And now, Perrigo has broken its silence–and the word isn’t what Mylan wants to hear.
 
Perrigo CEO Joseph Papa stuck to his company’s prior stance that Mylan’s $205-per-share bid “substantially undervalues” its business–and “the market movement following Teva’s announcement last week only reinforced” that conviction, he said during the company’s Q2 earnings call.
 
And if Mylan shareholders vote–at a special meeting later this month–to push forward with the Perrigo deal anyway? “If they proceed with a tender offer for Perrigo, this will not be the easy path that some are painting it to be,” he said, pointing out that the bar for success in the tender offer process is 80% of all outstanding Perrigo shares. ” … We’ll make a strategic decision with the board about what’s the right thing to do for the company,” he said.
 
The way some analysts see it, that’s still a big “if.” As Leerink Partners’ Jason Gerberry wrote in a recent note to investors, Mylan would have to bring its bid to about $230 per Perrigo share to make an “acceptable” offer for its target. And even if it can muster that, the potential tie-up “does not appear to create any value at prices above $205,” Cowen & Co. analyst Ken Cacciatore wrote late last month.
 
Meanwhile, Mylan topped Q2 earnings forecasts Thursday, posting EPS of 91 cents–2 cents better than analysts expected. Revenue of $2.37 billion fell short of analysts’ $2.39 billion forecast, however, despite year-over-year growth of 29%.
 
By Carly Helfand
 

comments closed

Related News

December 5, 2021

Catherine Mazzacco is leaving the position as President and CEO of LEO Pharma

Life sciences

After more than two years of leading LEO Pharma through a major transformation and a change of capital structure in a volatile environment during the global pandemic, the Board of Directors of LEO Pharma and President and CEO Catherine Mazzacco have jointly agreed that she will resign from her current role and leave the company on November 30, 2021.

December 5, 2021

Lonza and Bioqube Ventures to scale biologics and small molecules

Life sciences

Lonza and Bioqube Ventures, a European venture capital firm with a dual investment model including venture creation, have partnered to develop and manufacture biologics and small molecules. This is a five-year services agreement in which Lonza will provide advice and services to Bioqube Ventures’ portfolio companies.

December 5, 2021

UCB and Chiesi enter global license agreement for zampilimab a novel monoclonal antibody for fibrotic lung diseases

Life sciences

UCB has granted to Chiesi global exclusive rights to develop, manufacture and commercialize zampilimab, a monoclonal antibody targeting transglutaminase 2 (TG2), an enzyme associated in fibrotic diseases. UCB will receive upfront payment, future milestone payments and net sales royalties.

Send this to a friend