Perrigo rejects Mylan’s $29 billion buyout offer, boosting Teva’s $41 billion offer to acquire Mylan.
Perrigo Company plc (NYSE and TASE: PRGO), today announced that its board of directors has unanimously rejected the unsolicited proposal from Mylan NV (NASDAQ: MYL), disclosed April 8, 2015, to acquire all of its outstanding shares for $205.00 per share.
Joseph C. Papa, Perrigo’s Chairman, President and CEO, said that its board believes the Mylan’s proposal “substantially undervalues Perrigo and its growth prospects and that continued execution by the management team against its global growth strategy will deliver superior shareholder value. Perrigo has a long history of driving above market shareholder value through consistent growth with a focus on profitability and operational excellence, which is reflected in our organic net sales CAGR goal of 5-10% for the next three years. With the acquisition of Omega Pharma, we are a top five global OTC company with a diversified portfolio, a leading market position in key franchises and a strong and established global distribution platform. We will continue to capitalize on our durable competitive position by expanding our international platform organically and through future synergistic deals. These actions will advance our leadership in the global OTC marketplace.” Mr. Papa continued, “Perrigo’s Board believes that the Company has a strong independent future and is well positioned to continue to drive superior growth and shareholder value and provide high ‘Quality Affordable Healthcare Products®’ to customers and consumers globally.
In parallel, in a further challenge to Mylan’s takeover bid for Perrigo, Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), a pillar of the Israeli economy, offered yesterday to acquire Mylan for $82.00 per Mylan share in a transaction valued at $41 billion, with the consideration to be comprised of approximately 50 percent cash and 50 percent stock, marking Israel’s biggest foreign foray. According to Teva, its proposal provides Mylan stockholders with a more attractive alternative to Mylan’s proposed acquisition of Perrigo, as well as to Mylan on a standalone basis.
Perrigo’s rejection of Mylan’s bid is good news for Teva, and also for the Tel Aviv Stock Exchange (TASE), which had feared the possible delisting of Perrigo the second most traded stock on the TASE after Teva.
Teva’s proposal would provide Mylan stockholders with consideration representing a 37.7% 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% 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.
“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.”
Prof. Yitzhak Peterburg, Chairman of the Teva Board of Directors, said, “The proposal to acquire Mylan was unanimously approved and strongly supported by the Teva Board. Teva’s strategy has been to aggressively pursue growth opportunities that advance our goal of being a stronger, more diversified organization with the scale and resources to drive value across our business. Our proposed combination advances these objectives and would result in significant and sustained value creation for Teva stockholders.”
On April 8, Mylan’s Executive Chairman Robert J. Coury commented that his company’s proposal is “the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination.”
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading global pharmaceutical company that delivers high-quality, patient-centric healthcare solutions to millions of patients every day. Headquartered in Israel, Teva is the world’s largest generic medicines producer, leveraging its portfolio of more than 1,000 molecules to produce a wide range of generic products in nearly every therapeutic area. In specialty medicines, Teva has a world-leading position in innovative treatments for disorders of the central nervous system, including pain, as well as a strong portfolio of respiratory products. Teva integrates its generics and specialty capabilities in its global research and development division to create new ways of addressing unmet patient needs by combining drug development capabilities with devices, services and technologies. Teva’s net revenues in 2014 amounted to $20.3 billion.
is a global pharmaceutical company founded in 1961, and is headquartered in Potters Bar, Hertfordshire, United Kingdom.
“Working together around the world to provide 7 billion people access to high quality medicine, we innovate to satisfy unmet needs; make reliability and service excellence a habit; do what’s right, not what’s easy; and impact the future through passionate global leadership. We offer a growing portfolio of around 1,400 generic pharmaceuticals and several brand medications. In addition, we offer a wide range of antiretroviral therapies, upon which approximately 40% of HIV/AIDS patients in developing countries depend. We also operate one of the largest active pharmaceutical ingredient manufacturers and currently market products in about 145 countries and territories. Our workforce of approximately 30,000 people is dedicated to creating better health for a better world, one person at a time,” says Mylan.
Mylan develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals worldwide. The company provides generic or branded generic pharmaceutical products in tablet, capsule, injectable, or transdermal patch forms, as well as active pharmaceutical ingredients (APIs). It is also involved in the development of APIs with non-infringing processes for internal use and to partner with manufacturers; and the manufacture and sale of injectable products in antineoplastics, anti-infectives, anesthesia/pain management, and cardiovascular therapeutic areas. In addition, the company produces finished dosage form (FDF) products for the antiretroviral (ARV) market and non-ARV FDF products that are marketed to third parties. It offers generic pharmaceutical products to proprietary and ethical pharmaceutical wholesalers and distributors, group purchasing organizations, drug store chains, independent pharmacies, drug manufacturers, institutions, and public and governmental agencies.
Further, the company manufactures and sells branded specialty injectable and nebulized products comprising EpiPen Auto-Injector to treat severe allergic reactions; Perforomist Inhalation Solution, a formoterol fumarate inhalation solution for the maintenance treatment of bronchoconstriction in chronic obstructive pulmonary disorder patients; and ULTIVA, an analgesic agent used during the induction and maintenance of general anesthesia for inpatient and outpatient procedures. It sells specialty pharmaceuticals to pharmaceutical wholesalers and distributors, pharmacies, and healthcare institutions.
Perrigo Company plc
, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, nutritional products, and active pharmaceutical ingredients (API).
Perrigo was founded in 1887 and is headquartered in Dublin, Ireland. The company’s shares are traded on the NYSE and the Tel Aviv Stock Exchange; as a result of the merger with Agis Industries the company is a constituent of the TA-25 Index. Perrigo is the only non-Israeli company on the TA-25.
Perrigo offers its products primarily in the United States, the United Kingdom, Mexico, Israel, and Australia, as well as in Canada, China, and Latin America.
Its Consumer Healthcare segment offers OTC pharmaceutical products in the areas of analgesics, cough/cold/allergy/sinus, gastrointestinal, smoking cessation, and animal health products, as well as in the areas of feminine hygiene, diabetes care, and dermatological care; and contract manufacturing services.
Perrigo’s Nutritionals segment offers infant and toddler formula products, infant and toddler foods, as well as vitamins, minerals, and dietary supplement products to retailers, distributors, and consumers. Its Rx Pharmaceuticals segment develops, manufactures and markets a portfolio of Rx drugs in topical dosage forms, such as creams, ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquids, suspensions, solutions, and powders, as well as controlled substances, injectables, hormones, oral solid dosage forms, and oral liquid formulations. This segment provides its products to chain drug stores, wholesalers, distributors, hospital systems, and group purchasing organizations.
Perrigo’s API segment develops, manufactures, and markets API that are used in the production of pharmaceutical products to generic drug industries and branded pharmaceutical companies. Its Specialty Sciences segment provides Tysabri, which is used for the treatment of Multiple Sclerosis; and Prialt, a non-narcotic intrathecal analgesic. The company also offers pharmaceutical and medical diagnostic products.
Perrigo Israel Pharmaceuticals Limited
develops, manufactures, and markets generic pharmaceuticals, pharmaceutical ingredients, dermatological products, over-the-counter pharmaceuticals, and consumer products. It imports, markets, sells, and distributes prescription and OTC products, diagnostics, and medical devices in Israel. The company offers active pharmaceutical ingredients and finished dosage forms for the branded and generic pharmaceutical industries, as well as provides nutritional products. It also offers cosmetics and toiletry products, such as face and body care, skin care, spa lines, makeup, hair care, perfume, sun protection, laundry and household detergents, shampoos and conditioners, clothes softeners, cleaners, laundry powder, dishwasher soap, and liquid cleansers. The company offers its products through a chain of stores in Israel and internationally. The company was formerly known as Agis Industries (1983) Ltd. and changed its name to Perrigo Israel Pharmaceuticals Limited in March 2005. The company was founded in 1961 and is headquartered in Bnei Brak, Israel. It has manufacturing facilities in Israel, Germany, and the United States. Perrigo Israel Pharmaceuticals Limited operates as a subsidiary of Perrigo Company plc.]]>