Perrigo rejects $26 billion hostile Mylan takeover bid
pharmafile | November 13, 2015 | News story | Medical Communications, Sales and Marketing | Mylan, Perrigo, mergers and acquisitions
Perrigo has rejected Mylan’s hostile $26 billion bid after a 60% majority of shareholders were unconvinced by the terms by the Friday deadline.
As the offer has now lapsed, Mylan is unable to bid again for a year, and Perrigo shares tumbled 11% in the aftermath of Mylan’s announcement, while Mylan’s own rose 9.3%.
Mylan’s executive chairman, Robert Coury, said that while the result of the negotiations was disappointing, it would not affect his company’s future success: “As we have said all along, Mylan viewed Perrigo as a unique and exciting opportunity, but not one that was required for the future success of our company…We are well-positioned to quickly execute on the next strategic, value-enhancing opportunities for our business, some of which we have already identified.
“These potential external opportunities, coupled with the numerous exciting organic growth drivers we have cultivated and the powerful and differentiated global platform we have built, ensure we will remain a leader in our industry and that we are well-positioned to deliver continued growth in the near- and long-term.”
The latest unsuccessful bid was Mylan’s fourth in a seven-month-long courtship of the Ireland-based generic cold and allergy medicines manufacturer. Mylan had wanted to bolster its lineup in the face of the looming patent expiration of its EpiPen allergy medication next year.
However, several analysts believe Mylan had overvalued Perrigo, and that it would now be free to pursue potentially more valuable assets, including acquisitions of the generics units of companies including Pfizer and Sanofi.
Perrigo said in a statement that shareholders’ rejection of the offer was evidence of their faith in the company’s long-term strategy, vision, and management plans.
Joseph Papa, Perrigo chairman and CEO, comments, “We have said all along that this offer from Mylan was a bad deal for our shareholders, as it significantly undervalued our durable business model and industry-leading future growth prospects. Strong organic growth, a disciplined approach to M&A, and transparent, accessible corporate governance policies are the foundation of our successful business strategy. I am delighted that Perrigo shareholders voiced their clear support for this management team and our long-term strategy, highlighted by our ‘Base Plus Plus Plus’ growth model.”
Papa added that now that the “distraction” of Mylan’s attention was over, the company could continue to focus on this growth strategy.
Joel Levy
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