Friday 24 November 2017

Teva launches surprise bid for drug rival Mylan

Teva’s plant in Waterford
Teva’s plant in Waterford

David Wainer

Teva Pharmaceutical Industries made an unsolicited offer to buy Mylan NV for about $40.1bn (€37bn), in the drug industry's largest takeover attempt this year.

Teva, the world's biggest maker of generic medicines and which employs 500 people in Waterford, offered $82 a share in cash and stock, according to a statement.

That's about 23pc above Mylan's closing price on April 16, the day before Bloomberg News reported Teva was considering a bid. Mylan, which says it makes about one of every 11 drugs prescribed to Americans, has said it wants to stay independent and that a combination with Teva would face antitrust hurdles.

The deal would create a generics powerhouse with more than $27bn in revenue and re-establish Teva as the unchallenged giant in the industry. The Israeli company has lost market share to Indian manufacturers such as Sun Pharmaceutical Industries Ltd. Chief Executive Officer Erez Vigodman has pledged to look for deals as Teva's best-selling product, a branded treatment for multiple sclerosis called Copaxone, faces potential competition from generics.

"The attraction for Teva is that this deal would immediately allow them to grow and reduce their exposure to the impending drop in Copaxone sales," said Sam Fazeli, an analyst at Bloomberg Intelligence in London. "We still would have to consider the ramifications of antitrust regulation." Mylan made an unsolicited $28.9bn bid this month for Perrigo, which many saw as a trigger for Teva to act before Mylan becomes too big a target.

Irish Independent

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