Mylan goes after Perrigo

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Mylan goes after Perrigo

Home/Pharma News | Posted 09/10/2015 0 Post your comment

US generics manufacturer Mylan announced on 14 September 2015 that it had officially commenced its formal offer to acquire all outstanding ordinary shares of rival Ireland-based generics maker Perrigo Company (Perrigo).

A series of rejections by Perrigo’s management and board has spurred Mylan to go directly to its shareholders. Under the terms of the offer, Perrigo shareholders will receive US$75 in cash and 2.3 Mylan shares for each Perrigo share, making the deal worth around US$187 per share and an estimated US$27 billion overall.

Under Irish takeover rules, Mylan needs to convince investors holding 50.1% of Perrigo’s stock to sell for it to gain control. Perrigo CEO Joseph Papa has urged its shareholders to reject Mylan, saying that it was an ‘inadequate offer’. However, analysts believe Mylan should have no trouble getting this level of support, based on the fact that around 49% of Perrigo’s stock is owned either by hedge funds – most of which bought their shares in the past six months in anticipation of a deal – or large Mylan shareholders, which recently voted in favour of the takeover.

Mylan first announced it wanted to buy Perrigo in April 2015, when it was being pursued by Teva Pharmaceutical Industries [1].

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Reference
1. GaBI Online - Generics and Biosimilars Initiative. Teva finally makes bid for Mylan [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2015 Oct 9]. Available from: www.gabionline.net/Pharma-News/Teva-finally-makes-bid-for-Mylan

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Source: Bloomberg, Mylan, Perrigo, Reuters