Feb 10, 2016 5:42 PM

Mylan to buy Sweden's Meda AB for $7.2 billion

The Associated Press

NEW YORK (AP) Drugmaker Mylan says it will buy Meda AB of Sweden for $7.2 billion in cash and stock, and says the move will help it enter new markets.

Mylan valued the deal at $9.9 billion including Meda's debt. It said Wednesday Meda's board and largest shareholders support the sale.

Meda says about 60 percent of its sales come from prescription drugs. Key products include drugs that treat respiratory conditions, skin ailments, and pain and inflammation. Mylan had $9.45 billion in revenue in 2015 and said Meda's revenue totaled about $2.35 billion.

Mylan sells about 1,000 generic drugs, but its biggest-selling product is the EpiPen, used for the emergency treatment of allergic reactions.

In 2015 Mylan tried and failed to buy Perrigo, an Irish company that makes medicines, vitamins, nutritional products and infant formula. After that deal failed the company said it had already found some new possible acquisitions.

Mylan said the Meda deal will expand its over-the-counter drug business to about $1 billion in annual sales and will bring its products to Southeast Asia, the Middle East and Mexico.

Around the time of the Perrigo discussions, Mylan fended off a takeover bid from Teva Pharmaceutical Industries. About a year ago Mylan became part of a new company incorporated in the Netherlands, but it still runs its business out of its headquarters in Canonsburg, Pennsylvania, near Pittsburgh. It bought part of Abbott Laboratories' generic drug business at the same time.

Mylan N.V. also reported its fourth-quarter results on Wednesday. Its adjusted net income and revenue fell short of Wall Street forecasts.

Looking ahead to 2016, the company forecast earnings per share of $4.85 to $5.15 on revenue of $10.5 billion to $11.5 billion. Analysts surveyed by FactSet forecast earnings per share of $4.99 on revenue of $10.64 billion.

The company's stock fell 9.5 percent to $45.72 in aftermarket trading.

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