NEW YORK (AP) -- Over-the-counter medicines maker Perrigo is turning down a buyout offer from generic drugmaker Mylan that valued the company at $205 per share, or almost $29 billion, because it's too low.
Perrigo said Tuesday the offer undervalues its business, including its product pipeline and its recent purchase of Belgium's Omega Pharma, one of the largest OTC drug companies in Europe. Mylan offered to buy Perrigo for $28.86 billion in cash and stock. Representatives for Mylan weren't immediately available to comment on the rejected bid.
Perrigo's products include over-the-counter diabetes products, infant formula, vitamins, dermatology products, men's and women's health products and animal health items. It had about $4 billion in sales in its last fiscal year.
Mylan went public with its offer for Perrigo April 8, saying that if the companies joined forces, they would have more than $15 billion in annual sales of generic and nonprescription drugs and nutritional products.
Mylan NV is based in the Netherlands and Perrigo Co. is headquartered in Ireland. Both companies recently moved to Europe from the U.S. in transactions that reduced their tax obligations.
Mylan's offer comes on the heels of accelerating merger activity in the health care sector. Earlier Tuesday, Teva Pharmaceutical Industries Ltd., the world's largest generic drug company, offered to buy Mylan for $82 per share, or $40.1 billion. Teva's offer is contingent on Mylan not buying Perrigo. Mylan didn't comment on Teva's offer Tuesday, but it said Friday that it doubted regulators would approve the deal. It did say it would review an offer if Teva made one.
Perrigo shares fell 2.7 percent to $192.82 Tuesday. The stock is up 17 percent since April 7. Mylan's offer came at a premium of 24 percent to Perrigo's closing price on that date.