By Angela Chen
Mylan NV said it will make a formal offer, worth about $33
billion in cash and stock, to buy generic drug maker Perrigo Co.,
the latest move in a three-way takeover tussle.
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.
Perrigo shares closed Thursday at $201.63 and were off 1.4% in
recent trading.
Mylan shares, meanwhile, 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 fight 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.
Mylan and Perrigo generally compete in different segments of the
generic-drug business. Mylan is best known for selling generic
prescription drugs, though its top-selling product is the EpiPen
emergency treatment for allergic reactions. Perrigo makes
over-the-counter cough-and-cold remedies and infant formula for
chains like Wal-Mart Stores Inc. and Walgreens, which sell the
products under their own names.
Write to Angela Chen at angela.chen@dowjones.com
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