Mylan’s Formal Offer For Perrigo Will Heat Up Pharma Dealmaking
ByMylan MYL +3.15% on Friday morning unveiled its formal offer for Irish-domiciled drugmaker Perrigo , offering $60 a share in cash and 2.2 million Mylan shares, valuing the target at around $220 a share at current prices or $31 billion. The move comes as the generic drugmaker works to fend off a $40 billion takeover bidfrom its competitor, Teva Pharmaceuticals.
Included in Mylan’s offer were also financial details on the benefits it sees from remaining independent and cutting deals to boost its earnings growth. Mylan says it expects a merger with Perrigo will result in at least $800 million in annual pre-tax operational synergies by the fourth year after a deal’s close. The merger, Mylan said, will also be immediately to its earnings per share on a “fully-synergized basis” and said that its free cash flow will allow for rapid de-leveraging. It expects to maintain an investment grade rating…
Mylan’s Formal Offer For Perrigo Will Heat Up Pharma Dealmaking
