by By Marley Jay
In a deal that would combine two generic drugmakers that recently left the U.S. for Europe, Mylan says it wants to buy Perrigo for $205 per share, or $28.86 billion.
Shares of both companies climbed to all-time highs on the news. If they combine, Mylan and Perrigo would be one of the world's largest makers of generic and over-the-counter medicines.
Mylan said the combined company would have had $15.3 billion in revenue in 2014 and would be a leader in specialty drugs and nutritional products. It said the combined company would be able to grow even further with additional acquisitions.
Mylan's cash-and-stock offer comes at a premium of 24 percent to Tuesday's closing price for Perrigo shares. Mylan says it delivered a proposal to Perrigo on Monday. Perrigo confirmed that it received the offer and said its board will discuss the proposal.
Mylan said it wants the combined company led by Mylan executives including Chairman Robert Coury and CEO Heather Bresch.
Shares of Perrigo jumped $39.04, or 23.7 percent, to $203.75 in afternoon trading after trading as high as $215.73. Mylan shares advanced $7.75, or 13 percent, to $67.34. Earlier they peaked at $69.45.
Mylan NV relocated to the Netherlands in February after it paid $5.3 billion to buy a unit of Abbott Laboratories that sells specialty drugs and generic drugs that are marketed under brand names. Mylan had been based in Pennsylvania.
Perrigo Co. moved from Michigan to Ireland in December 2013 after it bought Elan Corp. for $8.6 billion.
The moves slashed both companies' tax bills.
In 2014 a spate of U.S. companies acquired foreign companies and then reincorporated in their target's home country. The move, called a corporate inversion or tax inversion, allowed the companies to move to nations with lower taxes than the U.S. The tactic was criticized by President Obama and others, and in September the U.S. Treasury Department changed some of its rules to make the tactic less attractive. Some companies that had been considering inversions backed away from the move.
Last month Perrigo bought Omega Pharma of Belgium for $4.48 billion including debt. Omega was one of the largest makers of over-the-counter drugs in Europe, and Perrigo said the deal made it one of the five largest OTC product companies in the world.
Explore further: Meda rejects revised offer from Mylan
© 2015 The Associated Press. All rights reserved.
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by By Marley Jay
In a deal that would combine two generic drugmakers that recently left the U.S. for Europe, Mylan says it wants to buy Perrigo for $205 per share, or $28.86 billion.
Shares of both companies climbed to all-time highs on the news. If they combine, Mylan and Perrigo would be one of the world's largest makers of generic and over-the-counter medicines.
Mylan said the combined company would have had $15.3 billion in revenue in 2014 and would be a leader in specialty drugs and nutritional products. It said the combined company would be able to grow even further with additional acquisitions.
Mylan's cash-and-stock offer comes at a premium of 24 percent to Tuesday's closing price for Perrigo shares. Mylan says it delivered a proposal to Perrigo on Monday. Perrigo confirmed that it received the offer and said its board will discuss the proposal.
Mylan said it wants the combined company led by Mylan executives including Chairman Robert Coury and CEO Heather Bresch.
Shares of Perrigo jumped $39.04, or 23.7 percent, to $203.75 in afternoon trading after trading as high as $215.73. Mylan shares advanced $7.75, or 13 percent, to $67.34. Earlier they peaked at $69.45.
Mylan NV relocated to the Netherlands in February after it paid $5.3 billion to buy a unit of Abbott Laboratories that sells specialty drugs and generic drugs that are marketed under brand names. Mylan had been based in Pennsylvania.
Perrigo Co. moved from Michigan to Ireland in December 2013 after it bought Elan Corp. for $8.6 billion.
The moves slashed both companies' tax bills.
In 2014 a spate of U.S. companies acquired foreign companies and then reincorporated in their target's home country. The move, called a corporate inversion or tax inversion, allowed the companies to move to nations with lower taxes than the U.S. The tactic was criticized by President Obama and others, and in September the U.S. Treasury Department changed some of its rules to make the tactic less attractive. Some companies that had been considering inversions backed away from the move.
Last month Perrigo bought Omega Pharma of Belgium for $4.48 billion including debt. Omega was one of the largest makers of over-the-counter drugs in Europe, and Perrigo said the deal made it one of the five largest OTC product companies in the world.
Explore further: Meda rejects revised offer from Mylan
© 2015 The Associated Press. All rights reserved.
Medical Xpress on facebook
Related Stories
Meda rejects revised offer from Mylan
Swedish pharmaceutical company Meda says it has rejected another offer from U.S. generic drugmaker Mylan Inc.
Perrigo to buy Elan for $8.6B, seeks tax savings (Update)
U.S. drugmaker Perrigo agreed Monday to buy Ireland's Elan for $8.6 billion in a deal that should allow the rapidly growing company to reduce its tax bill and boost its royalty stream.
US drugs firm Mylan completes $1.75 bln India buyout
US generic drug specialist Mylan said Thursday it had completed its $1.75 billion acquisition of a unit of India's Strides Arcolab, boosting its presence in the high-growth injectable drugs market.
US drug firm Mylan to buy Indian firm for $1.6 bn
US generic drugs specialist Mylan said Thursday it would buy a unit of India's pharma firm Strides Arcolab for $1.6 billion, boosting its presence in the high-growth injectable drugs market.
Horizon Pharma buying Hyperion for about $1.1 billion
Horizon Pharma is buying Hyperion Therapeutics for about $1.1 billion, gaining two treatments for genetic disorders.
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Combining nortriptyline and morphine provides better pain relief than using either drug alone
The combination of two well-known drugs will have unprecedented effects on pain management, says new research from Queen's.
Cost of cancer drugs varies widely based on who's paying
Uninsured cancer patients are asked to pay anywhere from two to 43 times what Medicare would pay for chemotherapy drugs, according to a new study from the University of North Carolina at Chapel Hill.
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