Teva has proposed a US$82 per share buyout, split 50/50 between cash and stock. The offer is described as ‘compelling for both Teva and Mylan stockholders’ by Teva CEO, Erez Vigodman.

The proposal provides Mylan stockholders with a more attractive alternative to Mylan’s proposed acquisition of Perrigo as announced on 8 April 2015, as well as to Mylan on a standalone basis, according to Teva. In fact, Teva even calculates that this deal provides a 37.7% premium to stockholders compared to the Perrigo offer and a 48.3% premium on Mylan’s stock price before rumours of the Teva/Mylan merger first emerged (10 March 2015).

The combination of the two companies would create a generics goliath with the most advanced R & D capabilities in the generics industry and the world’s leading integrated active pharmaceutical ingredient (API) division. Their combined pipelines include more than 400 pending generics applications in the US, which include more than 80 first-to-file applications, giving the companies the right to a six-month exclusivity period after patent expiration.

Mr Vigodman added that ‘we are confident that Mylan’s Board of Directors and stockholders will agree that our proposal represents a significantly more attractive alternative for Mylan and its stockholders than Mylan’s proposed acquisition of Perrigo.’ This could well be true, especially in light of the fact that Perrigo rejected Mylan’s proposal on 21 April 2015, saying that the offer ‘substantially undervalues the company and its future growth prospects and is not in the best interests of Perrigo’s shareholders’.

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