Company says its offer is a more attractive alternative to proposed purchase of Perrigo by Mylan
Israeli generic drugmaker Teva has announced a bid to buy Dutch rival Mylan in a cash and stock deal that could be worth US$40.1bn.
Mylan is itself currently trying to purchase Perrigo in an unsolicited $29bn bid, but this has been rejected by Perrigo.
Teva says its proposal provides Mylan stockholders with a 'substantial premium and immediate cash value, as well as significant potential for future value creation through participation in a financially and commercially stronger company'.
The company said its offer is a more attractive alternative to Mylan’s proposed acquisition of Perrigo, which was announced on 8 April.
Erez Vigodman, President and CEO of Teva, said the proposal is 'compelling for both Teva and Mylan stockholders and other stakeholders'.
'The combination of Teva and Mylan is a truly unique opportunity to build upon both companies' solid foundations,' he said.
'Bringing the two together will create a much stronger, more efficient platform to achieve our goals. As one company, we would have the infrastructure and capabilities to faster pursue a differentiated business model, fully integrating speciality and generics drugs with products, devices, services and technologies to meet the evolving needs of patients and customers.'
Bringing the two together will create a much stronger, more efficient platform to achieve our goals
The Teva and Mylan product offerings are complementary, and together would create the broadest portfolio in the industry, with a combined pipeline of over 400 pending ANDAs and more than 80 first-to-files in the US.
Teva added that the combined company will possess 'the capabilities and technologies to focus on more complex, hard-to-produce durable products, delivering better value and accessibility, while improving adherence and compliance'.
Teva's capabilities in this field will significantly expand with the addition of Mylan’s ophthalmic products, soft gel caps, topical and inhalant technologies, 'Wave 2' biosimilars, injectables and alternative dosage forms, and antiretroviral (ARV) products.
Teva also said it is committed to investing in and growing the combined company’s $10bn speciality pharmaceuticals business, which would benefit from leading positions in multiple sclerosis, respiratory, pain, migraine, movement disorders and allergy therapeutics, combined with an enhanced global infrastructure to pursue current and future commercialisation.
The combined Teva and Mylan would have pro forma 2014 revenues of approximately $30bn and EBITDA of approximately $9bn.
The proposal has been unanimously approved by the Teva Board.
Teva expects that the proposed transaction can be completed by year-end 2015.