Reuters

(Reuters)

Mylan Rejects $40-Billion Bid from Teva

Features Dow Jones Newswires

Mylan N.V. said its board unanimously rejected the unsolicited bid from Teva Pharmaceutical Industries Ltd., the latest move in a three-way tussle in a generic-drug industry facing challenges from slowing growth.

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A Teva spokesman wasn't immediately available to comment.

Mylan also said Monday that it remains committed to its $33 billion offer for Perrigo Co., which some have seen as an effort to prevent a potential purchase by Teva. Mylan on Friday had raised its offer to buy Perrigo from $28.9 billion and was promptly rebuffed.

At the heart of the deal-making frenzy in the drug industry is a quest for new revenue amid pricing pressure from cash-strapped governments and insurers, and increased competition.

Mylan Executive Chairman Robert J. Coury on Monday said Teva's $40 billion offer grossly undervalues the company and "would require Mylan's shareholders to accept what we believe are low-quality Teva shares in exchange for their high-quality Mylan shares."

He added that the transaction "lacks industrial logic and carries significant global antitrust risk."

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Mr. Coury also pointed to Teva's challenges in recent years, including the approval of the first generic version of Copaxone and "persistent turnover and turmoil amongst the Teva leadership and board."

A Teva takeover of Mylan would create the world's top-selling generic-drug company with more than $30 billion in sales in 145 countries. Mylan and Teva are both generic-drug companies with a popular branded product: the EpiPen allergic-reaction treatment in the case of Mylan and the Copaxone multiple-sclerosis drug at Teva.

In early trading, Mylan shares fell 3.7% to $73.23, Teva fell 2% to $63.12 and Perrigo rose $1.45 to $194.34.

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