Mylan skeptical of rumored bid from Teva
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NEW YORK – Generic drugmaker Mylan, citing media speculation Teva Pharmaceutical could be eyeing it as a takeover target, said it doubts regulators would approve such a deal and added it is committed to its current strategy as a stand-alone company.
In a news release Friday, Mylan said it hasn’t received an offer and described the idea Teva might want to buy it as a rumor.
The Dutch company said anti-trust regulators probably wouldn’t approve a deal between Mylan and Teva because their businesses overlap in major ways. It said it would thoroughly examine an offer if it received one.
Teva did not immediately respond to a request for comment.
Shares of Mylan NV closed Friday at $69.82, up $2.98 or 4.46 percent, after reaching an all-time high of $72.62 earlier in the day. Teva Pharmaceutical Industries Ltd. shares closed at $64.91, up $1.42, or 2.24 percent.
Earlier this month, Mylan offered to buy generic drug and ingredients maker Perrigo for about $29 billion, or $205 per share. Perrigo, which is based in Ireland, said it would review Mylan’s offer. Mylan said the companies would have $15.3 billion in combined revenue in 2015.
Teva has about $20 billion in annual revenue, and its executives spoke recently about their interest in making new acquisitions and consolidating some of the largest companies in the generic drug industry.
“We are ready to read to take on a transaction to integrate it with the company,” said Sigurdur Olafsson, the head of Teva’s generics business, at a health care conference in March.
In a research note written earlier this month, Barclays analyst Douglas Tsao said Teva believes some of the largest generic drug companies should combine their businesses because they could save a lot of money by merging their manufacturing operations. He said an acquisition of Mylan would “re-establish Teva as the dominant market leader.”
Teva gets almost half its revenue from generic drugs. It also makes treatments for central nervous system disorders, respiratory illnesses and cancer as well as over-the-counter medicines. Its biggest-selling product is the multiple sclerosis drug Copaxone. In March, it agreed to buy Auspex Pharmaceuticals Inc., which is developing central nervous system disorder treatments, for $3.2 billion.