Fri, Apr 10, 2015 - Page 15 News List

Mylan offers to buy Perrigo in US$28.9bn drug firm deal

AFP, NEW YORK

Generic drug company Mylan NV on Wednesday offered to acquire over-the-counter giant Perrigo Co for US$28.9 billion in the latest proposed megamerger in the pharmaceutical sector.

Shares of both companies soared after Mylan announced the US$205 per share, cash and stock bid for Perrigo, the maker of such popular nonprescription products as Sudafed, Claritin and NyQuil. The offer represented a premium of 25 percent over Perrigo’s closing price on Thursday last week of US$163.73 in New York trading. US markets were closed on Friday.

The deal would combine companies with annual sales of more than US$15 billion and complementary businesses in specialty health brands, generics, over-the-counter and nutritional products.

“Our proposal is the natural culmination of our prior discussions and reflects our shared vision for the industry,” Mylan executive chairman Robert Coury said in a letter on Monday to Perrigo chief executive Joseph Papa.

“This is the right time for our two companies to move forward together, and Mylan and our board are firmly committed to making this combination a reality,” Coury wrote.

Perrigo said its board would meet to discuss the proposal and that “a further announcement will be made when appropriate.”

The deal comes on the heels of a series of large acquisitions in the global pharmaceutical industry, including transactions involving both Perrigo and Mylan, both of which shifted headquarters from the US to overseas to take advantage of lower tax rates.

Perrigo relocated to Dublin in 2013 following its acquisition of Irish pharmaceutical company Elan Corp for about US$8.6 billion.

The Elan transaction added the multiple sclerosis therapy Tysabri to its massive consumer business.

Mylan, long known as a leader in generics, shifted its headquarters to Amsterdam this year following a deal to buy Abbott Laboratories Inc’s non-US specialty and branded generic drug business for US$5.3 billion.

Mylan’s assets include a specialty business focused on respiratory and allergy therapies.

The company’s executives are now based in Potters Bar, England.

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