If it is true, it is the best thing that could happen. Teva has strong, sound leadership and a much better work environment. The change in leadership and culture alone will be a blessing for all.
No chance. This "rumor" has surfaced and resurfaced for years. The rumor, more than likely, was either started by headline seeking journalists (their motto - if there isn't a story to cover, just create one) or Abbott who may have simply started the rumor to pump the price of Mylan in advance of dumping $2B worth of their shares. Mylan doesn't fit Teva's strategic plans. Also, Teva has neither the cash, treasury stock or debt capacity to finance a deal of this magnitude.
May not be too worried about EpiPen going generic, check out the latest article from Fortune... Mylan goes big with $29 billion offer to buy Perrigo The deal would be the biggest pharmaceutical deal of the year and create a generic medicine powerhouse. Generic drugmaker Mylan has proposed buying Perrigo for about $29 billion in cash and stock in what would be the biggest pharmaceutical deal of the year so far. Mylan ( MYL 14.76% ) will pay $205 per share in cash and stock for the Ireland-based drugmaker, representing a 24.2% premium over its closing price Tuesday. The deal would create a generic medicine powerhouse, giving the combined company critical mass in specialty brands, generics, and over-the-counter and nutritional products. Together, the two companies would have about $15.3 billion in 2014 sales. “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,” Robert Coury, Mylan’s executive chairman, said in a statement. This is Mylan’s second deal in nine months. The UK-based drugmaker acquired Abbott Laboratories in July for $5.3 billion, intending to move its tax address to the Netherlands. Perrigo ( PRGO 18.39% ) made a similar move in 2013 when it relocated its tax headquarters to Dublin after purchasing Elan Corp. “It has been thought for quite some time that Perrigo is a takeover target,” Morningstar analyst Michael Waterhouse said. “What will be interesting to see is if we end up in a bidding war,” Waterhouse said, suggesting Teva Pharmaceutical Industries and Valeant Pharmaceuticals International as potential rival bidders. The proposal is subject to approval by Perrigo’s board. —Reuters contributed to this report.
Consolidation is inevitable. Not a whole lot of branded meat on that Perrigo bone but nice looking deal if we don't get outbid. Epi expiration putting a lot of pressure up top to get this done. Fun times.
April 21, 2015 By Riley McDermid, BioSpace.com Breaking News Sr. Editor Pittsburgh, Penn.-based Mylan Inc. (MYL)'s $30 billion unsolicited bid for generic drugmaker Perrigo Company (PRGO) has been rejected by the company, after Perrigo said late Tuesday that the offer “substantially undervalues” Perrigo and “its future growth prospects and “is not in the best interests of Perrigo’s shareholders.” “Perrigo has a long history of driving above market shareholder value through consistent growth with a focus on profitability and operational excellence, which is reflected in our organic net sales CAGR goal of 5-10 percent for the next three years,” said Joseph C. Papa, chairman, president and chief executive, in a statement. On April 8, Mylan made the $30 billion cash-and-stock transaction valued at $205 a share, a 25 percent premium to the company’s current trading price. News of the announcement initially sent share of Mylan shooting up, a move that caused market officials to halt trading. Dublin, Ireland-based Perrigo Co. had a share count of 147 million as of March 30. Mylan said its proposal was delivered to Perrigo's chairman on April 6, but that bid has now been rejected.
(Reuters) - Teva Pharmaceutical Industries' bid for Mylan NV would create a company controlling nearly 25 percent of the U.S. generics market, including drugs in short supply, according to industry experts and a Reuters review of regulatory filings. Both issues will factor into any antitrust review, they said. Teva , the world's largest generic drugmaker, made its $40 billion offer public on Tuesday and quickly signaled it was ready to sell some overlapping assets to win antitrust approval for a deal. Mylan has not responded to the unsolicited bid but has said it wants to remain independent and that the overlap with Teva's products could scuttle a combination. It is also pursuing a hostile takeover of drugmaker Perrigo Co Plc . Most treatments used by the U.S. public are cheaper generic copies of brand-name medications. The percentage has grown as leading drugs lost patent protection in the last decade and health insurers sought ways to rein in costs. But manufacturing generics is a low-margin business, prompting companies to reduce production of some drugs over time. Previous industry mergers have also reduced capacity, and manufacturing lapses at some plants have delayed or shuttered production, leading to temporary shortages of cancer drugs, anesthesia and other medicines. Teva has already looked at the competitive overlap between its portfolio and Mylan's, and started discussions with the Federal Trade Commission about the possible merger, sources familiar with the situation said. Mylan makes 360 generic products for the U.S. market, while Teva manufactures 375. The FTC has studied the potential impact of a pharmaceutical deal on drug shortages. In reviewing the 2012 merger of generics makers Actavis and Watson Pharmaceuticals, the agency said it "evaluated whether the proposed transaction would exacerbate any of those (drug) shortages." Typically, the FTC wants to be sure there are several competitors making a particular medicine so that production would continue even if one manufacturing source shuts down, sources familiar with the situation said. "The FTC should be thinking about and not wanting to approve mergers that would worsen the conditions that would cause shortages," said an antitrust expert who requested anonymity because he wished to protect his business relationships. "The fewer production facilities that there are, the greater susceptibility to price fluctuations." Prices for generic drugs sometimes spike when supplies dry up. Last fall, Independent Senator Bernie Sanders and Democratic Representative Elijah Cummings opened an investigation into 14 drug companies about generic price increases. The office of the inspector general of the Department of Health and Human Services is also planning to a review. "All the manufacturing consolidation makes us nervous," said Dr. Beverly Philip, a professor of anesthesiology at Harvard Medical School. With some shortages, doctors have had to shift patients to medicines that may not work as well. If Teva buys Mylan and phases out some of its less-profitable sterile injectable drugs, both for anesthesia and other uses, she said, it would tighten the screw another notch.
