Mylan in huge $29 billion bid for Perrigo
pharmafile | April 9, 2015 | News story | | Abbott, Mylan, OTC, Perrigo, Shire
Mylan has offered to pay the over-the-counter (OTC) drug specialist Perrigo $28 billion to acquire its business.
The proposed deal would produce a “global pharmaceutical leader with an unmatched commercial and operating platform”, Mylan says, concentrated in specialty brands, generics, OTC and nutritional products. The combined company could have a stock market value of nearly $60 billion.
Mylan, a US specialty pharma and generics firm, has offered to buy Irish-based Perrigo for around $205 per share – or $28.86 billion – in a proposal of a combination of cash and its own stock for each Perrigo stake.
“This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination,” comments Mylan’s executive chairman Robert Coury.
He adds: “We look forward in the weeks ahead to working with them to capitalise on this tremendous opportunity and working together to create a unique leader with a one of a kind profile in our industry.”
Mylan, which has a growing portfolio of around 1,400 generic offerings and several branded medications, will be looking to boost its business with the acquisition of Perrigo – which last year reported net sales of over $4 billion.
Both companies have been involved in big money buy-outs in recent years, including Mylan’s $750 million transaction to acquire a handful of women’s healthcare companies from Indian-based Famy Care.
The new partnership, which is expected to close in the second half of this year, will offer a portfolio of 12 approved products, plus impending FDA applications for 30 more.
This move came less than a year after Mylan purchased Abbott’s branded generics business, which has 3,800 staff and generated around $2 billion in sales in 2013, for $5.3 billion.
Similarly, Perrigo splashed its cash when it purchased fellow OTC drugmaker Omega, taking on its $1.3 billion worth of debt in a deal estimated around $4.5 billion. Sanofi, Actavis and Boehringer Ingelheim had all expressed interest in the potential purchase of Omega in 2014.
Tom Robinson
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