Teva offers to buy US rival Mylan for $40 billion
In one of the biggest pharmaceutical takeover bids, Israel-based Teva on Tuesday offered to acquire US-based Mylan for $40 billion in cash and stock to create a generic drug powerhouse to compete with rivals such as Sun Pharma from India.business Updated: Apr 22, 2015 00:25 IST
In one of the biggest pharmaceutical takeover bids, Israel-based Teva on Tuesday offered to acquire US-based Mylan for $40 billion in cash and stock to create a generic drug powerhouse to compete with rivals such as Sun Pharma from India.
Teva has made an offer to acquire all outstanding shares of Mylan at $82 per share — 50% in cash and another 50% in stock.
The combined Teva and Mylan would have revenue of approximately $30 billion, consolidating Teva’s position as the world’s largest generic drug maker.
Mylan is currently ranked second in generic market, but both the firms are facing stiff competition with the growing might of entities such as Sun Pharma, which has become the world’s fifth-largest generic drug maker after its Ranbaxy acquisition.
Sun Pharma has also expanded its presence in markets across the world mostly through acquisitions, including that of a majority control in Taro Pharmaceuticals that had begun operations in Isarel and later expanded into North America.
Interestingly, Mylan has Indian-origin Rajiv Malik as its president and executive director, who led the company’s commercial launch in India in 2012 and had also served with Ranbaxy in the past.
“Our proposal is compelling for both Teva and Mylan stockholders and other stakeholders,” said Erez Vigodman, chief executive of Teva. The deal would provide Mylan stockholders with “the opportunity to participate in the significant upside potential of the combined company — one that would transform the global generics space and leverage it to hold a unique leadership position in the pharmaceutical industry,” Vigodman said.
“The proposal to acquire Mylan was unanimously approved and strongly supported by the Teva Board. Teva’s strategy has been to aggressively pursue growth opportunities that advance our goal of being a stronger, more diversified organisation with scale and resources to drive value across our business,” Teva chairman Yitzhak Peterburg said in a statement.
The proposed combination advances these objectives and would result in significant and sustained value creation for Teva stockholders, he added.