Mylan's bid for Perrigo fails

Robert Coury

Only 40% of rival generic pharmaceutical company Perrigo's shareholders accepted Mylan's $26 billion offer.

Only 40% of the shareholders of Perrigo Company (NYSE:PRGO; TASE:PRGO) accepted Mylan N.V.'s (Nasdaq: MYL; TASE: MYL) bid, well short of the required 50% for the $26 billion hostile takeover to succeed. Mylan's executive chairman Robert Coury said, "As we have said all along, Mylan viewed Perrigo as a unique and exciting opportunity, but not one that was required for the future success of our company. With one of the strongest balance sheets in our industry, including a debt to adjusted EBITDA ratio of 2x[1], as well as our well-recognized prowess in identifying attractive external assets, we are well-positioned to quickly execute on the next strategic, value-enhancing opportunities for our business, some of which we have already identified. These potential external opportunities, coupled with the numerous exciting organic growth drivers we have cultivated and the powerful and differentiated global platform we have built, ensure we will remain a leader in our industry and that we are well-positioned to deliver continued growth in the near- and long-term."

Over the past few weeks, generic pharmaceuticals manufacturer Mylan held a major campaign in Israel to try and win over the Israeli investors who hold an estimated 10% of Perrigo. The company's senior executives led by Coury met with institutional investors in Israel and a major ad campaign has been running in the Israeli financial media. Coury also expressed interest in investing in Israeli drug development companies. Most significantly, Mylan has listed on the TASE and is committed to staying there for at least three years, if its offer succeeds, and one year if it fails.

Perrigo is listed on the TASE and has major manufacturing pharmaceutical operations in Israel based on its acquisition of Agis 10 years ago.

Perrigo has consistently argued that the deal undervalues it but that it is not against a takeover deal as such. At one point during Teva's aborted takeover bid for Mylan, the boosted share price lifted the offer for Perrigo to as much as $34 billion.

Published by Globes [online], Israel business news - - on November 13, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Robert Coury
Robert Coury
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