Mylan NV said it will launch a formal offer worth about $33 billion in cash and stock to buy generic drug maker Perrigo Co.

Mylan, which had indicated earlier this month that it was considering such a bid, said its offer consists of $60 in cash and 2.2 Mylan shares for each share of Perrigo. Based on Thursday's close, the offer values Perrigo at about $222 a share.

Mylan shares have surged this month after the company received its own takeover approach from Teva Pharmaceutical Industries Ltd. worth about $40 billion.

Perrigo has thus far rejected Mylan's advance, and Mylan has spurned Teva.

The three-way tussle underscores the deal-making surge that is under way in an industry grappling with slowing growth. At the heart of the frenzy is a quest for new revenue amid pricing pressure from cash-strapped governments and insurers, and increased competition. Indeed, both EpiPen and Copaxone could face generic competition as soon as this year, analysts say.

Write to Angela Chen at angela.chen@dowjones.com

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