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Mylan rejects Teva's $40.1 billion buyout offer

Mylan rejects Teva's $40.1 billion buyout offer as generic drug developers seek consolidation

Mylan rejects Teva's $40.1 billion buyout offer

NEW YORK (AP) -- Mylan N.V. rejected Teva Pharmaceuticals' $40.1 billion buyout offer, saying the cash-and-stock proposal undervalues the company.

The rejection comes as both Mylan and Teva look to further consolidate the generic drug industry.

Mylan has made a $29 billion bid of its own for rival Perrigo but that offer as been rejected. The Dutch company says it still stands by that offer.

Mylan had previously said that Teva's bid would likely be rejected by regulators because of antitrust concerns. Its statement Monday went further, saying a Teva buyout would "expose Mylan to a problematic culture and leadership with a poor record of delivering shareholder value."

Teva had offered to pay $82 per share for the company, which marked a 21 percent premium at the time of the offer. Shares of Mylan fell $3.56, or 4.7 percent, to $72.50 in morning trading Monday.

Teva gets almost half its revenue from generic drugs. It also makes treatments for central nervous system disorders, respiratory illnesses, and cancer as well as over-the-counter medicines. Its biggest-selling product is the multiple sclerosis drug Copaxone. In March it agreed to buy Auspex Pharmaceuticals Inc., which is developing central nervous system disorder treatments, for $3.2 billion.

Mylan, with about 25,000 employees, had $929.4 million in net income and $7.72 billion in revenue in 2014. It has over 1,400 drugs, but the overwhelming bulk of its business is generic drugs with sales of $6.46 billion in 2014. The company's specialty segment sells the EpiPen Auto Injector emergency treatment for allergic reactions, which had sales of $1.19 billion in 2014.

Shares of Israel-based Teva Pharmaceutical Industries Ltd. fell $1.06, or 1.7 percent, to $63.35 in morning trading Monday.


Updated : 2021-09-16 18:45 GMT+08:00