Kirkland & Ellis LLP punched back at Mylan NV's attempt to
disqualify the law firm from advising Teva Pharmaceutical
Industries Ltd. in its bid for Mylan, dismissing the effort as an
antitakeover tactic.
Kirkland said its limited regulatory and litigation work for
Mylan shouldn't prevent it from advising Teva on a $40 billion
offer, which Mylan has rejected.
Mylan, based in the Netherlands, sued earlier this month to
disqualify Kirkland from the matter. It said its relationship with
Kirkland dates back to January 2013 and has given the law firm
"wide-ranging access to Mylan's business," including confidential
information about its EpiPen allergic-reaction treatment, which
Teva is now targeting with a competing product.
Such information could be valuable for a company in Teva's
shoes, helping it assess the likelihood of regulatory approvals and
determine how much to bid.
Kirkland said it "scrupulously maintained that confidentiality"
with internal walls, according to a heavily redacted brief filed
late Wednesday in Pennsylvania federal court.
Kirkland, which says Teva engaged it in April about a possible
takeover bid for Mylan, said it had a waiver to take on matters
adverse to Mylan and has represented parties including Teva and
GlaxoSmithKline in litigation against Mylan.
A representative for Mylan said Thursday that the waiver didn't
cover Kirkland's current representation of Teva.
The two companies, fierce rivals in the generic-drug business,
are locked in a three-way takeover battle. Teva is pursuing Mylan
with a $40 billion unsolicited offer, and Mylan is simultaneously
chasing a reluctant Perrigo Co. with a $36 billion cash-and-stock
bid.
A hearing in the case is set for Tuesday.
Write to Liz Hoffman at liz.hoffman@wsj.com
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