Wells Fargo analyst dismisses Teva-Mylan merger rumor


Michael Faerm says such a move is unlikely and would not solve Teva's growth problems.

Wells Fargo analyst Michael Faerm recommends that investors should not give credence to the rumors that circulated on Wall Street at the end of last week of a possible merger between Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and Mylan (NASDAQ: MYL).

In Faerm's view, such a merger has advantages and disadvantages, but while it could be financially attractive, he considers it unlikely.

Faerm does not see the acquisition of a generic drugs company as a priority for Teva, and says that such an acquisition would not solve its growth problem. He also points out that Mylan may not necessarily be interested in a sale or merger.

This is not the first time that speculation has arisen about a merger between Teva and Mylan. In recent months, rumors have been rife about a big acquisition or merger move involving Teva. Besides Mylan, Canadian company Valent Pharmaceuticals International Inc. (NYSE: VRX) has also been mentioned.

Teva, traded on the New York Stock Exchange and the Tel Aviv Stock Exchange, has a market cap of $46.9 billion, and at the end of last week its share price touched an annual high of $55.14. Mylan has a market cap of $18.8 billion. It is one of four companies aiming to launch a generic version of Copaxone, Teva's flagship multiple sclerosis treatment.

Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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