Perrigo Co. on Thursday urged shareholders to reject Mylan NV's hostile takeover bid, days after Mylan officially took its offer directly to shareholders.

By launching the offer, Mylan bypassed Perrigo's management and board, which have rebuffed its advances.

"I strongly urge you to protect your investment in Perrigo and net tender your shares into Mylan's inadequate offer," wrote Perrigo Chief Executive Joseph Papa in a letter to shareholders.

The bid doesn't account for Perrigo's growth prospects and a tie-up would also expose Perrigo shareholders to financial risks, as about two-thirds of Mylan's bid consists of Mylan stock, "which we believe will face negative pressures going forward," Mr. Papa wrote.

Mylan is offering $75 in cash and 2.3 shares of Mylan for each Perrigo share held, valuing Perrigo at about $27.41 billion based on Wednesday's closing stock price. Shares of Perrigo have slipped 7.4% this month. The price tag compares with Mylan's previous offer of about $35 billion.

Mylan in April publicly bid for Perrigo, saying a combination would create a strong competitor in the quickly consolidating pharmaceuticals sector. Perrigo has rejected Mylan's offers as too low.

Both companies are generic-drug makers, but they focus on different segments of the market. Perrigo makes cold and allergy medicines and infant formulas, including some sold under chain brands at Walgreens Boots Alliance Inc. and Wal-Mart Stores Inc.

Mylan, meanwhile, concentrates on generic drugs, but it is best known for its branded EpiPen allergic-reaction treatment, which may soon face pressure from potential competitors.

Perrigo shareholders would own about 40% of the combined company under the terms of the offer, which is set to expire Nov. 13.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

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(END) Dow Jones Newswires

September 17, 2015 07:35 ET (11:35 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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