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Apr 8, 2015 12:54 PM

Mylan offers about $29B for rival generic drugmaker Perrigo

The Associated Press

NEW YORK (AP) In a deal that would combine two generic drugmakers that recently left the U.S. for Europe, Mylan says it wants to buy Perrigo for $205 per share, or $28.86 billion.

If they combine, Mylan and Perrigo would be one of the world's largest makers of generic and over-the-counter medicines.

Mylan says the combined company would have had $15.3 billion in revenue in 2014 and would be a leader in specialty drugs and nutritional products. It said the combined company would be able to grow even further with additional acquisitions.

Mylan's cash-and-stock offer comes at a premium of 24 percent to the latest closing price for Perrigo shares. Mylan says it delivered a proposal to Perrigo on Monday. Perrigo did not immediately respond to a request for comment on the offer.

Mylan said it wants the combined company led by Mylan executives including Chairman Robert Coury and CEO Heather Bresch.

Shares of Perrigo jumped $39.04, or 23.7 percent, to $203.75 in midday trading after trading as high as $215.73 after the disclosure of the offer. Mylan shares advanced $7.75, or 13 percent, to $67.34.

Mylan NV relocated to the Netherlands in March after it paid $5.3 billion to buy a unit of Abbott Laboratories that sells specialty drugs and generic drugs that are marketed under brand names. Mylan had been based in Pennsylvania.

Perrigo Co. moved to Ireland in December 2013 after it bought Elan Corp. for $8.6 billion. The moves slashed both companies' tax bills. Perrigo had been based in Michigan.

Last month Perrigo bought Omega Pharma of Belgium for $4.48 billion including debt. Omega was one of the largest makers of over-the-counter drugs in Europe, and Perrigo said the deal made it one of the five largest OTC product companies in the world.


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