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news.Israel-based Teva Pharmaceutical Industries has submitted a bid to acquire generic drug-maker Mylan in a deal that could be worth $40.1bn
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Teva has offered $82 for each Mylan share in this cash and stock deal, which is expected to transform the generic drugs industry.
According to Teva, the proposal also provides Mylan stockholders with a more attractive alternative to Mylan’s proposed acquisition of Irish over-the-counter (OTC) firm Perrigo, as well as to Mylan on a standalone basis.
Earlier this month, Mylan offered to buy Perrigo in a deal valued at nearly $29bn, under which Perrigo shareholders would receive $205 per share.
However, Perrigo’s board of directors have unanimously rejected the unsolicited takeover bid from Mylan, saying the offer substantially undervalues the company.
Perrigo chairman, president and CEO Joseph Papa said: "The Board believes the Proposal substantially undervalues Perrigo and its growth prospects and that continued execution by the management team against our global growth strategy will deliver superior shareholder value.
"With the acquisition of Omega Pharma, we are a top five global OTC company with a diversified portfolio, a leading market position in key franchises and a strong and established global distribution platform.
"We will continue to capitalize on our durable competitive position by expanding our international platform organically and through future synergistic deals. These actions will advance our leadership in the global OTC marketplace."
Teva said that its proposal would provide Mylan stockholders with consideration representing a 37.7% premium to the stock price of Mylan on 07 April 2015.
If the deal is successful, the combined company would use its significantly more efficient and advanced infrastructure, with enhanced scale, production network, end-to-end product portfolio, commercialization capabilities and geographic reach.
Teva president and CEO Erez Vigodman said: "Our proposal would provide Teva stockholders with very attractive strategic and financial benefits and Mylan stockholders with a substantial premium and immediate value for their shares, as well as the opportunity to participate in the significant upside potential of the combined company – one that would transform the global generics space and leverage it to hold a unique leadership position in the pharmaceutical industry."
Image: Teva offers $82 per share to acquire Mylan. Photo: courtesy of FreeDigitalPhotos.net / Wagging DogMedia Limited.