Mylan N.V. (MYL) Receives Unsolicited $82 Per Share Bid From Teva Pharmaceutical Industries Ltd.

Shares of Mylan N.V. (MYL) were trading up +5.55 or +8.16 percent to $73.60 in Tuesday's premarket after news that it was a potential takeover target for Teva Pharmaceutical Industries Ltd. (TEVA). Mylan stock closed at $68.04, down -1.77 or -2.54 percent in Monday's regular trading session.

Cecil Township, Pennsylvania based Mylan N.V.
is the second largest generic and specialty pharmaceutical company in the world and a major producer and supplier of active pharmaceutical ingredients for generic drug products. The company has a portfolio of 1,400 generic pharmaceuticals and markets its products in approximately 145 countries and territories, employing roughly 30,000 people worldwide. Mylan Inc. is a major provider of antiretroviral therapies supplying about 40 percent of HIV/AIDS patients in developing nations.

Petah Tikva, Israel based Tiva Pharmaceutical Industries Ltd. is the world's largest generic drug manufacturer and one of the 15 largest pharmaceutical companies on the planet. The company's specialty is in the manufacture of proprietary pharmaceuticals and pharmaceutical ingredients, as well as generic drugs. Teva operates facilities in Israel, North and South America and Europe and employs more than 46,000 people worldwide.

In a statement issued on April 17th, Mylan Executive Chairman Robert J. Coury stated that, "Mylan is fully committed to its stand-alone strategy, including its proposal to acquire Perrigo, and today's speculation has no impact whatsoever on this strategy.

Mylan made a $205 per share bid for Perrigo (PRGO) Company Plc on April 8th in a combination of cash and stock, and intends to proceed on the deal. Nevertheless, Mylan said that its board would carefully consider any offer for the company and work in the best interest of the firm, its shareholders and other stakeholders.

CEO Coury added that, "We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit. Further, there would be significant overlap in the companies' businesses and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances.

The combination of Teva with Mylan - which has a market valuation of $33.3 billion -would create a giant in the generic pharmaceutical industry with over $27 billion in combined revenues. Teva has been losing business to several manufacturers based in India and the combined company could recover some of the market share in generic products lost to Indian competitors.

According to a source, which requested to remain unidentified due to the confidential nature of the information, Teva has spoken to several banks on financing the potential deal and is working with Barclays Plc. A formal offer could be made public as early as later today. Nevertheless, Teva is still in the process of finalizing the details of the bid and there is a strong possibility that the deal may not go through.

Both Mylan and Teva stocks are showing significant gains in this morning's premarket, which indicates that investors are confident a bid from Teva is forthcoming. As of this writing, Teva has made an unsolicited bid $82 per share for Mylan, valuing the company at over $40.1 billion.

Other News About MYL

Mylan-Perrigo Merger: What Are the Long-Term Growth Drivers?

Perrigo has 160 filings waiting for FDA approval and could potentially generate revenues of $235 million from new product launches.

Mylan Scores Final Win In Patent Challenge On Inhalation Drug

Mylan obtains patent for obstructive pulmonary treatment despite a challenge by Teva Pharmaceuticals Ltd.

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Published on Apr 21, 2015
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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