The $100 Billion Deal Is Still Out There for Pharma: Real M&A
2015-07-27 16:54:13.16 GMT
(For a Real M&A column news alert: SALT REALMNA <GO>.)
By Tara Lachapelle
(Bloomberg) -- Why stop at $221 billion? Drug companies are
entering another round of dealmaking, after plowing past the
global record.
Teva Pharmaceutical Industries Ltd.’s $40.5 billion
agreement Monday to purchase Allergan Plc’s generic-medicines
business puts the mechanism in place to trigger more takeovers.
For starters, the remaining Allergan company -- with its
prized branded drugs, including the lucrative Botox franchise --
may be a good target for Pfizer Inc. Buying Dublin-domiciled
Allergan, currently valued at about $129 billion, may also be a
way for Pfizer to lower its tax bill, a move it’s been dreaming
of but hasn’t yet been able to pull off.
Alternatively, Allergan itself could go “elephant
hunting,” says Ronny Gal, an analyst for Sanford C. Bernstein &
Co. In that case, Amgen Inc. and AbbVie Inc. are the most likely
candidates, each valued at more than $120 billion. Both stocks
surged Monday.
Teva’s decision to drop its pursuit of Mylan NV in favor of
the Allergan transaction also increases the likelihood that
Mylan will get to consummate its purchase of Perrigo Co. While
Perrigo’s board and management team are still resisting a sale,
the stock is trading as if a deal will probably happen.
The spread between Perrigo’s share price and Mylan’s cash-
and-stock bid reached its narrowest on Monday. Perrigo
shareholders will vote on that $35 billion transaction in the
coming weeks.
Even Teva is on the lookout for more deals. Erez Vigodman,
the Israeli drugmaker’s chief executive officer, said in an
interview Monday that Teva has the ability to keep making
purchases for specialty pharmaceuticals this year and next.
“You cannot sit still,” he said, referring to the merger
wave that has swept through the pharma industry.
For Related News and Information:
Teva to Buy Allergan’s Generic-Drug Unit for $40.5 Billion
Allergan May Lower Debt, Continue Buying Spree With Teva Deal
All Eyes on Pfizer as Shareholders Await the Mega-Deal: Real M&A
Teva CEO Sees More Deals Coming After $40.5B Allergan Purchase
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman
2015-07-27 16:54:13.16 GMT
(For a Real M&A column news alert: SALT REALMNA <GO>.)
By Tara Lachapelle
(Bloomberg) -- Why stop at $221 billion? Drug companies are
entering another round of dealmaking, after plowing past the
global record.
Teva Pharmaceutical Industries Ltd.’s $40.5 billion
agreement Monday to purchase Allergan Plc’s generic-medicines
business puts the mechanism in place to trigger more takeovers.
For starters, the remaining Allergan company -- with its
prized branded drugs, including the lucrative Botox franchise --
may be a good target for Pfizer Inc. Buying Dublin-domiciled
Allergan, currently valued at about $129 billion, may also be a
way for Pfizer to lower its tax bill, a move it’s been dreaming
of but hasn’t yet been able to pull off.
Alternatively, Allergan itself could go “elephant
hunting,” says Ronny Gal, an analyst for Sanford C. Bernstein &
Co. In that case, Amgen Inc. and AbbVie Inc. are the most likely
candidates, each valued at more than $120 billion. Both stocks
surged Monday.
Teva’s decision to drop its pursuit of Mylan NV in favor of
the Allergan transaction also increases the likelihood that
Mylan will get to consummate its purchase of Perrigo Co. While
Perrigo’s board and management team are still resisting a sale,
the stock is trading as if a deal will probably happen.
The spread between Perrigo’s share price and Mylan’s cash-
and-stock bid reached its narrowest on Monday. Perrigo
shareholders will vote on that $35 billion transaction in the
coming weeks.
Even Teva is on the lookout for more deals. Erez Vigodman,
the Israeli drugmaker’s chief executive officer, said in an
interview Monday that Teva has the ability to keep making
purchases for specialty pharmaceuticals this year and next.
“You cannot sit still,” he said, referring to the merger
wave that has swept through the pharma industry.
For Related News and Information:
Teva to Buy Allergan’s Generic-Drug Unit for $40.5 Billion
Allergan May Lower Debt, Continue Buying Spree With Teva Deal
All Eyes on Pfizer as Shareholders Await the Mega-Deal: Real M&A
Teva CEO Sees More Deals Coming After $40.5B Allergan Purchase
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman