Business World

Tuesday 21 November 2017

Takeover-hungry Mylan may sweeten Perrigo pill

Packages of Walgreens branded over-the-counter medicines, manufactured by Perrigo Co. Photo: Bloomberg
Packages of Walgreens branded over-the-counter medicines, manufactured by Perrigo Co. Photo: Bloomberg

Cynthia Koons and Jeffrey McCracken

Drug-maker Mylan's chairman told investors he may sweeten the company's cash-and-stock offer for Perrigo by adding terms to reduce the risk to its shareholders, said people who recently met with him.

In private meetings with investors, Mylan executive chairman Robert Coury was adamant that Mylan won't be bought by Teva Pharmaceutical Industries, which has made an unsolicited bid for the comoany. Teva's offer for Mylan is contingent on Mylan dropping its bid for Dublin-headquartered Perrigo.

Instead, Mr Coury laid out other scenarios that could play out, according to the people, who asked not to be named because the meetings were private. In one possibility, Mr Coury suggested a Mylan-Perrigo combination would be an attractive future target for Pfizer, and that Pfizer could use a deal to move its legal address abroad and lower its tax rate.

Perrigo has rejected Mylan's most recent offer of $75 in cash and 2.3 Mylan shares for each Perrigo share.

Mr Coury said Mylan could add payments to Perrigo in the event a deal fell apart, or include other sweeteners to reduce the risk to Perrigo shareholders, said the people.

Mylan spokeswoman Nina Devlin declined to comment on the meetings. Representatives for Teva and Perrigo didn't immediately respond to requests for comment, and Pfizer declined to comment.

Mylan, a generic drugmaker, has made two unsolicited takeover overtures for Perrigo, which generates about half of its sales from consumer health-care products.

Irish Independent

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