Israel’s Teva Pharmaceutical Offers to Acquire Mylan for USD40 Billion

PENNSYLVANIA, USA – Teva Pharmaceutical Industries, an international pharmaceutical company headquartered in Petah Tikvah, Israel, has reportedly offered to buy Mylan NV, a Pennsylvania-headquartered global generic and specialty pharmaceuticals company, for about USD40.1bn, Teva said in a statement

Teva made the unsolicited offer to acquire all of the outstanding shares of Mylan in a transaction valued at USD81 per Myslan share, with the consideration to be comprised of approximately 50 percent cash and 50 percent stock.

Teva Pharmaceutical Industries, an international pharmaceutical company headquartered in Petah Tikvah, Israel, has reportedly offered to buy Mylan NV, a Pennsylvania-headquartered global generic and specialty pharmaceuticals company.
Teva Pharmaceutical Industries, an international pharmaceutical company headquartered in Petah Tikvah, Israel, has reportedly offered to buy Mylan NV, a Pennsylvania-headquartered global generic and specialty pharmaceuticals company.

Teva’s proposal also provides Mylan stockholders with a more attractive alternative to Mylan’s proposed acquisition of Perrigo Company plc, as announced on April 8, 2015, as well as to Mylan on a standalone basis.

Teva’s proposal would provide Mylan stockholders with consideration representing a 37.7 percent premium to the stock price of Mylan on April 7, 2015, which is the last day of trading prior to Mylan’s press release regarding its unsolicited proposal for Perrigo, and a 48.3 percent premium to the unaffected stock price of Mylan on March 10, 2015, which is the last day of trading prior to widespread speculation of a transaction between Teva and Mylan.

The proposed combination of Teva and Mylan would create a leading company in the pharmaceutical industry, well positioned to transform the global generics space. The combined company would leverage its significantly more efficient and advanced infrastructure, with enhanced scale, production network, end-to-end product portfolio, commercialization capabilities and geographic reach.

“The proposed combination of Teva and Mylan would create a leading company in the pharmaceutical industry, well positioned to transform the global generics space,” Teva statement said.

The combined company would leverage its significantly more efficient and advanced infrastructure, with enhanced scale, production network, end-to-end product portfolio, commercialization capabilities and geographic reach, the statement added.

“Our proposal is compelling for both Teva and Mylan stockholders and other stakeholders,” said Erez Vigodman, President and CEO of Teva.

“Our proposal would provide Teva stockholders with very attractive strategic and financial benefits and Mylan stockholders with a substantial premium and immediate value for their shares, as well as the opportunity to participate in the significant upside potential of the combined company – one that would transform the global generics space and leverage it to hold a unique leadership position in the pharmaceutical industry.

Earlier, Mylan declared that it has not received any offer from Teva nor does it believe that the match would be a good fit.

“We believe it is clear that such a combination is without sound industrial logic or cultural fit,” said Mylan’s chairman Robert Coury.

Coury said Mylan has studied the potential merger for some time but concluded that it is unlikely that any such combination could obtain anti-trust regulatory clearances. – BusinessNewsAsia.com

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