Teva Confirms Speculations with Unsolicited Offer to Acquire Mylan for $40.1 Billion

Teva has confirmed speculations of a possible Mylan takeover bid, announcing a proposal to purchase all of the outstanding shares of Mylan for about $40.1 billion.

Teva, the world’s largest generics drugmaker, made an unsolicited offer to acquire the company in a cash and stock transaction valued at $82 per Mylan share. The consideration would be comprised of approximately 50 percent cash and 50 percent stock. Teva claims that its proposal provides Mylan stockholders with a more attractive option than Mylan’s proposed $28.9 billion acquisition of Perrigo Company.

The proposal represents a 37.7 percent premium to the stock price of Mylan on April 7, 2015, the last day of trading prior to Mylan’s press release announcing its unsolicited bid for Perrigo, and a 48.3 percent premium to the stock price of Mylan on March 10, 2015, the last day of trading prior to rumors surrounding a transaction between Teva and Mylan.

Following several rumors that Teva would acquire Mylan, Robert J. Coury, Executive Chairman of Mylan commented on the speculation, claiming that the company does not believe the combination of the companies would be logical. “We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit. Further, there would be significant overlap in the companies’ businesses and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances,” he said in a statement.

Teva claims that combining the companies would create a leading company in the pharmaceutical industry that would leverage its significantly more efficient and advanced infrastructure, with enhanced scale, production network, end-to-end product portfolio, commercialization capabilities and geographic reach. Teva said that the combined company would focus on complex technologies and more durable and sustained products, in combination with robust capabilities in specialty drug development and commercialization.

“We are very satisfied with the progress Teva has made over the last year, solidifying the foundation of our company, protecting its main specialty franchises and building our engines for organic growth. We have deep conviction in the future of Teva, building on our people, pipeline and capabilities in generics and specialty. The combination of Teva and Mylan is a truly unique opportunity to build upon both companies’ solid foundations. Bringing the two together will create a much stronger, more efficient platform to achieve our goals. As one company, we would have the infrastructure and capabilities to faster pursue a differentiated business model, fully integrating specialty and generics drugs with products, devices, services and technologies to meet the evolving needs of patients and customers.”

The Teva Board of Directors have unanimously approved the deal. Mylan is among the companies developing generic versions of Teva’s top-selling multiple sclerosis (MS) drug Copaxone, which had $4.2 billion in sales last year. Sandoz’s copy of the drug won US approval last week.

Sources: Teva Pharmaceutical Industries Ltd.; Mylan NV

Last updated: 4/21/15; 10:10am EST

 

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