Teva Is Said to Explore Mylan Bid to Create Generic-Drug Giant
2015-04-17 18:22:34.156 GMT
By Ed Hammond, Manuel Baigorri and David Wainer
(Bloomberg) -- Teva Pharmaceutical Industries Ltd. is
exploring a takeover offer for Mylan NV, people with knowledge
of the matter said, in a move that would create a global
generic-drug giant.
Teva hasn’t made a formal approach yet, the people said,
though Mylan is aware of the Israeli company’s interest. Teva is
evaluating the purchase internally and has also approached
advisers about the potential bid and financing, the people said,
asking not to be identified discussing private information.
The deliberations may not lead to an offer, the people
cautioned. Mylan would be a very large purchase for Teva Chief
Executive Officer Erez Vigodman, who has been in the position
for just over a year. Also, Mylan earlier this month set up a
mechanism under Dutch securities law that could make a takeover
more difficult.
A Teva purchase of Mylan has long been anticipated by
analysts who see a combination of two large generic drugmakers
as an opportunity to boost market share and cut costs. Mylan
this month made an unsolicited $28.9 billion bid for Perrigo
Co., which many see as a trigger for Teva to act before Mylan
becomes an even larger target.
Though Perrigo has said it will consider the offer, it
hasn’t publicly responded to the bid yet.
Teva spokeswoman Denise Bradley declined to comment on the
matter. Nina Devlin, a spokeswoman for Mylan, didn’t immediately
reply to a request for comments. After its shares gained 18
percent this year in Tel Aviv trading, Teva has a market value
of about $57 billion. Mylan’s market value is closer to $33
billion.
Takeover Spree
The pharmaceutical industry has been in the grip of a
takeover spree -- as companies look for new products and
pipelines to offset a fall in sales. Teva is no exception: The
company’s top selling drug, Copaxone, will compete with generic
copies this year, and its executives have been vocal about their
appetite for acquisitions.
Novartis AG’s Sandoz unit on Thursday won approval to make
a generic version of the multiple sclerosis treatment. Mylan has
also sought approval to market generic Copaxone, though its
version hasn’t been approved yet.
For Related News and Information:
Teva Set to Resume Deals After Investors Reward Rivals: Real M&A
Pharma’s Comeback Deals Keep Drug M&A on Track to Reach Records
Top Stories:TOP<GO>
--With assistance from Tara Lachapelle and Cynthia Koons in New
York and Matthew Campbell in London.
To contact the reporters on this story:
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net;
David Wainer in Tel Aviv at +972-3-542-7110 or
dwainer3@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net;
Aaron Kirchfeld at +44-20-3525-8830 or
akirchfeld@bloomberg.net
Elizabeth Fournier
2015-04-17 18:22:34.156 GMT
By Ed Hammond, Manuel Baigorri and David Wainer
(Bloomberg) -- Teva Pharmaceutical Industries Ltd. is
exploring a takeover offer for Mylan NV, people with knowledge
of the matter said, in a move that would create a global
generic-drug giant.
Teva hasn’t made a formal approach yet, the people said,
though Mylan is aware of the Israeli company’s interest. Teva is
evaluating the purchase internally and has also approached
advisers about the potential bid and financing, the people said,
asking not to be identified discussing private information.
The deliberations may not lead to an offer, the people
cautioned. Mylan would be a very large purchase for Teva Chief
Executive Officer Erez Vigodman, who has been in the position
for just over a year. Also, Mylan earlier this month set up a
mechanism under Dutch securities law that could make a takeover
more difficult.
A Teva purchase of Mylan has long been anticipated by
analysts who see a combination of two large generic drugmakers
as an opportunity to boost market share and cut costs. Mylan
this month made an unsolicited $28.9 billion bid for Perrigo
Co., which many see as a trigger for Teva to act before Mylan
becomes an even larger target.
Though Perrigo has said it will consider the offer, it
hasn’t publicly responded to the bid yet.
Teva spokeswoman Denise Bradley declined to comment on the
matter. Nina Devlin, a spokeswoman for Mylan, didn’t immediately
reply to a request for comments. After its shares gained 18
percent this year in Tel Aviv trading, Teva has a market value
of about $57 billion. Mylan’s market value is closer to $33
billion.
Takeover Spree
The pharmaceutical industry has been in the grip of a
takeover spree -- as companies look for new products and
pipelines to offset a fall in sales. Teva is no exception: The
company’s top selling drug, Copaxone, will compete with generic
copies this year, and its executives have been vocal about their
appetite for acquisitions.
Novartis AG’s Sandoz unit on Thursday won approval to make
a generic version of the multiple sclerosis treatment. Mylan has
also sought approval to market generic Copaxone, though its
version hasn’t been approved yet.
For Related News and Information:
Teva Set to Resume Deals After Investors Reward Rivals: Real M&A
Pharma’s Comeback Deals Keep Drug M&A on Track to Reach Records
Top Stories:TOP<GO>
--With assistance from Tara Lachapelle and Cynthia Koons in New
York and Matthew Campbell in London.
To contact the reporters on this story:
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net;
David Wainer in Tel Aviv at +972-3-542-7110 or
dwainer3@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net;
Aaron Kirchfeld at +44-20-3525-8830 or
akirchfeld@bloomberg.net
Elizabeth Fournier