Generic drugmaker Mylan NV, citing media speculation that Teva Pharmaceutical Industries Ltd might be eyeing it as a takeover target, says it doubts that regulators would approve such a deal and is committed to its current strategy as a stand-alone company.
In a news release on Friday, Mylan said that it has not received an offer and described the idea that Teva might want to buy it as a rumor.
The Dutch company said anti-trust regulators would probably not approve a deal between Mylan and Teva, because their businesses overlap in major ways. It said it would thoroughly examine an offer if it received one.
Teva did not immediately respond to a request for comment.
Shares of Mylan rose US$2.98, or 4.5 percent, to US$69.82. Earlier they spiked up as much as 8.7 percent. Teva Pharmaceutical shares gained US$1.42, or 2.2 percent, to US$64.91.
Earlier this month, Mylan offered to buy generic drug and ingredients maker Perrigo Co for about US$29 billion, or US$205 per share. Perrigo, which is based in Ireland, said it would review Mylan’s offer. Mylan says the companies would have US$15.3 billion in combined revenue this year.
Teva has about US$20 billion in annual revenue, and its executives have spoken recently about their interest in making new acquisitions and consolidating some of the largest companies in the generic drug industry.
“We are ready to take on a transaction,” Teva head of generics business Sigurdur Olafsson said at a healthcare conference last month.
In a research note written earlier this month, Barclays analyst Douglas Tsao said Teva believes that some of the largest generic drug companies should combine their businesses, because they could save a lot of money by merging their manufacturing operations.
He said an acquisition of Mylan would “re-establish Teva as the dominant market leader.”
Teva gets almost half of its revenue from generic drugs. It also makes drugs for central nervous system disorders, respiratory illnesses and cancer, as well as over-the-counter medicines. Its biggest-selling product is the multiple sclerosis drug Copaxone. Last month, it agreed to buy Auspex Pharmaceuticals Inc, which is developing central nervous system disorder treatments, for US$3.2 billion.
Mylan shares are up 17 percent since April 7, the day before it went public with its offer for Perrigo, and are near an all-time high.
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